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Analysis from Metlife showed four out of seven tax breaks had failed to keep up with rising prices.

The worst of this was inheritance tax, which if adjusted for inflation for the last 11 years, should be £547,505 and not the current £312,000, the company said.

Isa allowances have increased by just 2.9 per cent since their introduction in April 1999 when they would have risen 31.4 per cent in line with inflation, MetLife said, while higher rate tax thresholds have increased 33.3 per cent but could have risen by 37.1 per cent.

Dominic Grinstead, strategic development and marketing director for MetLife, said the gap between tax rates and inflation was an important factor for people to take into account when saving for retirement as they generally had to rely on fixed incomes.

Mr Grinstead said: "People who have made the commitment to save for their retirement often fail to take into account the effect of inflation on their income.

"This analysis shows that inflation over 11 years can have a massive effect on outcomes and everyone needs to take account of what rising prices can do to their pension pots.

"With the current pressures on government finances it is unlikely that there will be many reductions in tax for savers in the foreseeable future. Savers need to keep in mind the effect inflation is having on their tax breaks."

Tony Catt, sole practitioner of Hove-based Tony Catt IFA, said: "Not everyone considers the impact of inflation - it depends on how well they planned.

"Certainly you should take into account basic inflation or the average earnings increase."