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A "m isunderstood"' tax rule is costing savers £24,500 in retirement. Salary exchange is an arrangement where employees exchange part of their salary in return for an employer pension contribution.

Because the salary is being exchanged rather than paid directly, neither the employee or the employer will pay National Insurance Contributions on the amount exchanged. Find out about how this works.

Susan Hope, a retirement specialist at Scottish Widows, warns that the term "salary sacrifice" creates unnecessary fear among workers who believe they'll lose income. She told GB News: "People hear salary 'sacrifice' and assume they need to give something up, that's not the case."

READ MORE Pensioners urged not to withdraw money in 'panic' before November change

Ms Hope said: "S

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