Surely you get tax relief on pension contributions, don't you? Within limits. If so, private pension saving is treated more favourably than state pension saving.

That "surely" mightily if you know your way round the system, like an accountant, or perhaps a lawyer. But most people, including me, haven't the faintest idea of how tax allowances and exemptions work. I suspect that most people could avoid any amount of tax if they knew all the nooks and crannies and fiddles that the rich use.

Here is a link to lovely. George Osborne advising people how to bleed the system - that was when he was in opposition of course < a href="http://www.youtube.com/watch?v=8qjBec3fpBI&feature=player_embedded"> What a lovely man!