Sir, – I refer to recent proposals to allow early access to pensions “Ibec calls for early access to pensions”, Business+Innovation, September 3rd). This illustrates how imprudent it is to make pension provision over 40 years at the expense of all other major items of expenditure in life, ie, house purchase, education, loss of employment, business start-up, etc.
Ibec said such a measure would provide a domestic economic stimulus of €1.8 billion if applied to additional voluntary contribution (AVC) schemes and personal pensions. Would it not make more sense to stop putting money into all pensions rather than making early withdrawals? Surely it would be much simpler to withdraw tax subsidies on pension contributions resulting in a greater domestic economic stimulus?
A pensions early-access plan, if implemented, would only provide another gravy train for the pensions industry with the fees it would impose. – Yours, etc,