SSIA holders urged to start or top up pensions

SSIA holders have been urged by the Financial Regulator to use their money to start or top up pensions.

SSIA holders have been urged by the Financial Regulator to use their money to start or top up pensions.

The Regulator said research it had carried out showed that only 3 per cent of people plan to use their SSI money for their retirement.

SSIA savers who earned €50,000 or less in the tax year before their SSIA matures can qualify for the once-off government pensions incentive. To get the government bonus, people must invest some of their SSIA money in a pension within three months of their SSIA maturing, for a minimum period of one year.

Consumer Director, Mary O'Dea said: "This incentive will be a good option for some people, particularly if you do not have a pension or you want to top-up your pension with a lump sum.

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"It is especially attractive for those on the lower tax rate, as they do not benefit as much from existing tax relief on pension contributions."

For every €3 you invest in your pension, the Government will contribute €1, up to a maximum of €2,500. This means that if you invest €7,500 of your SSIA in your pension, the value to you will be €10,000.