Despite pressures on household budgets, if a family of two adults and two children managed to save the maximum amount – currently £136,960 – in these tax efficient savings vehicles, they could accrue £3.3m in the time it takes a new-born child to reach adulthood.

Billy Mackay, marketing director of AJ Bell, which compiled the data, admitted that while it may not be in the grasp of most families to use up all of their pension and ISA allowances every year, these numbers highlight their potential.

He said: “The tax benefits of pensions and ISAs are considerable and anyone saving for themselves, their children or other family members, should probably focus on these products first.”

The maximum amount a family of four can save in the 2012/13 tax year is £136,960, which incorporates the pension and ISA allowances of two adults and two children. In the 2013/14 tax year this rises to £137,680 because the adult ISA limit increases by £440.

If there were no further changes to ISA and pension allowances over the following 17 years £3.319m could have been saved, with investment growth of 3%.