In Short

A round-up of today's other stories in brief

Ark Life urges pensions for low earners

Ark Life, AIB's life assurance subsidiary, has called on the Government to introduce a new type of pension that would encourage the savings habits developed by Special Savings Incentive Accounts (SSIAs).

Ark Life says its proposed pension acceleration scheme would help improve pension provision among low and medium-income earners. It would be open to people who pay tax only at the standard rate of 20 per cent or no tax at all and have at least five years to go until retirement. The pension holders would then qualify for a Government contribution of 25 per cent or €1 for every €4 saved, as they would under an SSIA.

"The bonus of 25 per cent will mean that lower income workers will always receive a meaningful and motivational addition to their pension and they will no longer be disadvantaged in comparison with wealthier workers, who enjoy substantial tax reliefs," said Bernard Lynch, Ark Life's marketing manager.

EBS offers parents school cost advice

EBS is offering back to school budgeting advice to parents with schoolgoing children on its website www.insidetrack.ie.

The website highlights the expenses parents can incur in a school year and how to budget for them.

"The back to school period can be a financial headache for anyone, especially if you have children starting school for the first time," said Dave Keenan, EBS head of corporate communications.

Inside Track was created by EBS to help make financial information easier to understand.

IIB relaunches portfolio bond

IIB Bank has launched a new round of its Protected Portfolio Bond, aimed at investors with a minimum of €10,000.

The bond has two options, the secure option and the growth option, offering either 100 per cent or 90 per cent capital protection, depending on the investor's appetite for risk. The growth option offers greater potential for higher returns in exchange for the lower capital security.

The bond invests in a portfolio of equities, European property and global commodities. The closing date is October 21st.

Brokers introduce long-dated fund

Montgomery Oppenheim has written to more than 2,000 companies to inform them about a new long-dated bond fund designed to protect against funding shortfalls in defined benefit pension schemes.

The new long-dated bond fund is being launched at a time when many Irish actuaries are warning companies to offset their liabilities against the threat posed by volatile investment markets and falling annuity rates.

The fund mostly invests in longer dated euro zone government fixed-interest securities. It is backed by German bank Sal Oppenheim.