Insurance Ireland today welcomes the Minister’s confirmation that pensions of up to €60k pa will be fully supported through tax relief on pension contributions. This certainty will continue to encourage people to save for their retirement. However the industry is disappointed that the commitment that the pensions levy of 0.6% would not be continued after 2014 has been abandoned. Today we have learned that a “new” pensions levy will apply from 2014 although the new levy will fall to 0.15% in 2015.

Kevin Thompson, CEO, Insurance Ireland, said, “Last year the Minister announced a package of measures which industry broadly welcomed as bringing certainty to those saving for retirement and we are pleased to see the Minister’s confirmation that pensions of up to €60k will be fully supported through continuing tax relief at the marginal rate on pension contributions. However we are disappointed at the announcement of a new pensions levy, albeit at a reduced rate, and that those who have made the effort to save for retirement have been targeted again.”