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Halifax has contacted customers directly to demonstrate how they can transform every £1,000 saved into £1,250. In an email, it tackled the topic of pensions.

It said: "You may already have a workplace pension - but is it enough? Happy new (tax) year! It's a fresh chance to use your annual pension allowance and keep more of what you earn. With tax relief, your pension can grow faster, making it one of the smartest ways to save for later life.

"Pay £1,000 into your personal pension and it will become £1,250 with tax relief. 20% basic rate tax relief is automatically applied for everyone. That's an extra £250 added, without you earning a penny more.

"Your workplace pension's always your first stop, especially because your employer adds money too. But if you've already got the most out of your employer, or have additional income you want to save, a personal pension can be ideal."

It proceeded to outline that it provided "two flexible options". The first is a ready-made pension.

This is overseen by specialists to align with an applicant's age and retirement schedule. It maintains a stronger growth emphasis when retirement is distant and adopts lower risk as retirement approaches. It can be monitored and supplemented at any time through Halifax's mobile banking app.

The second is a Self-Invested Personal Pension (SIPP). This is where the customer enjoys full control, making all decisions from investment choices to pension withdrawal methods.

It warned that a ready-made pension or a SIPP "may not be suitable for everyone and a personal pension isn't a replacement for a workplace pension offered by your employer. If you're unsure, we'd recommend that you speak to a financial adviser who would normally charge for their advice".

Halifax noted that pensions are a long-term investment and cannot typically be accessed prior to retirement.

The amount customers receive back is not guaranteed and can fall as well as rise. It is possible to receive back less than the sums originally paid in.

It further stated that tax treatment is dependent on individual circumstances and may be liable to change in the future. Tax relief may also differ for Scottish taxpayers.