Nearly three quarters (73 per cent) of savers don’t know that you can contribute to someone else’s pension, research from Hargreaves Lansdown has revealed.

Under the current rules, savers can contribute up to £2,880 per year into a pension for a non-earning spouse, partner or child and they will receive tax relief topping it up to £3,600.

Savers can also contribute to a working spouse or partner's pension as long as all contributions remain below their annual allowance, which is whatever is lowest of 100 per cent of their earnings or £60,000.

However, some savers were more likely to know about these rules, according to the research, as two thirds of men were unaware compared to 80 per cent of women.

Higher rate taxpayers were also more likely to know about these allowances, as 61 per cent were aware that they could contribute to someone else’s pension, compared to just over a fifth (21 per cent) of basic rate taxpayers.

Commenting on the findings, Hargreaves Lansdown head of retirement analysis, Helen Morrissey, stated: “The ability to pay into a partner’s or child’s pension is an important financial planning opportunity and yet the vast majority of us are completely unaware of it.

“Contributing to a partner’s pension during times when they aren’t working can play a vital part in plugging any gaps in their long-term saving and helping them build a resilient retirement income. Meanwhile, you can get your child’s or grandchild’s pension planning off to a flying start by paying into a Junior SIPP on their behalf while they are small.

“If you have more money to spare and you have used your own annual allowance, then you can top up the pension of a working spouse or partner too as long as their overall contributions don’t exceed their annual allowance.

“In the case of a child, you could find your early contributions mean they have a pension worth tens of thousands of pounds, or even more by the time they start work. This puts them at a significant advantage over their peers who are yet to be auto-enrolled.

“It means long-term they are under less pressure to make big contributions themselves and they have more flexibility to save for other things such as a first home or a car."

Previous research from Hargreaves Lansdown also revealed that making future financial plans together improves couples’ retirement income prospects, as roughly one in two couples who planned together, rather than separately, could expect a moderate retirement income.

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