The likelihood that savers will invest additional money in banks is now almost three times higher than in a pension insurance scheme

According to a study, savers are almost three times more likely to put extra money into a bank or building society account than into a pension.

Almost two-thirds (65 percent) of those with a savings account would invest excess money in their savings over the next 12 months, while a fifth (22 percent) would invest additional money in their pension, according to a survey by Standard Life.

Men are more likely to opt for a pension supplement (26 percent) than women (17 percent).

Almost two-thirds of those with savings accounts would invest excess cash in their savings, while one-fifth would put extra money into their retirement

While savings rates look more attractive as they climb to the highest rates in years, putting extra cash into retirement has the added benefit of a tax break.

Depending on the earnings level, this is between 20 and 45 percent and increases your contribution significantly.

For example, for a taxpayer subject to the basic rate to contribute £100, a personal contribution of £80 is required, plus £20 from tax relief.

That’s like getting an immediate 25 percent refund on your original contribution from the government.

However, in exchange for the benefit, pension savers must freeze their money until age 55 (or age 57 from 2028).

Helen Morrissey, head of fixed income research at Hargreaves Lansdown, says: “Interest rates may be the highest we’ve seen in years but inflation remains high at 6.8 per cent and over time this will erode the purchasing power of your savings so it is.” “It’s important that you also look at pensions once you have a buffer.”

k.binns@dailymail.co.uk