Minister calls on workers to reinvest SSIAs

Minister for Social Affairs Séamus Brennan has called on the public to keep up the good saving habits encouraged by the SSIA scheme by reinvesting in pensions schemes.

He called on savers to take advantage of a Government incentive to convert their SSIA savings into pensions.

Under the scheme, the Exchequer will pay a bonus of €1 for every €3 transferred directly into a pension account of lower paid SSIA holders who are taxed at 20 per cent up to a maximum of €2,500.

Speaking to announce National Pensions Action Week 2006 in Dublin this afternoon, Mr Brennan said: "The incentives are creating an ideal opportunity for thousands of people on middle and low incomes to improve their pensions position as it allows for a maximum once-off contribution of up to €10,000.

"I would urge people to avail of this opportunity as a way of investing in securing a decent income for their later years."

Tiarnán O Mahoney, chairman of the Pensions Board, said: "It is crucial that the savings habit is not abandoned by consumers when the SSIAs come to fruition. A pension is like a long-term version of an SSIA account with tax incentives which make sense from the financial point of view."

National Pensions Action Week will run from May 1st-7th, and will entail an advertising and promotional campaign designed to encourage workers to start a pension.