A family with two children an extra £536 a year in benefits by simply saving extra for retirement, Royal London found.
The little known connection between retirement savings and child support payments affects families where one parent is earning between £50,000 and £60,000 year.
These households face a high income child benefit charge that wipes out some or all of the value of the payment on a sliding scale.
However, people can increase their pension contributions to lower income and pay a smaller charge.
Families who pay an additional £3,000 per year into their pension, could cut their child benefit charge by 30 per cent of the amount of child benefit received, according to Royal London.
It’s thought around 320,000 families could fall within the earnings band and bag extra child benefit, while boosting pensions at the same time.
Families in this position also fall into the higher rate taxpayers, which means they effectively get a 40p in the pound contribution to their pension contributions through tax relief.
Steve Webb, former pensions minister, who is now director of policy at Royal London, said: “For a higher earning family, putting money into a pension is already a very attractive option.
“They benefit from higher rate tax relief on their contributions and may also get a matching contribution from their employer.
“But what they may not be aware of is the additional advantage of reducing the tax charge they face as a higher income family receiving child benefit.
“This is another reason for families in this income bracket to prioritise pension saving and to take advice about their options.”