Sir, – People who saved the maximum in Saving Certificates and Bonds to supplement their State pension will suffer a reduction of €1,980 per annum as a result of the recent interest rate reduction imposed by the National Treasury Management Agency.
Annual interest on these products was recently reduced to 2.56 per cent while 5.9 per cent was paid on €1 billion in the first ever sale of amortising 25-year bonds to the Irish pensions industry last August. Where is the equity in this? €1,980 per annum may be small change for NTMA executives enjoying salaries in excess of €500,000 per annum, but not for the majority of pensioners whose main source of income is the State contributory old-age pension or the non-contributory pension.
We are constantly reminded of the inadequacy of the State pension to sustain a lifestyle above the poverty line. Recently the Government announced plans to provide a new universal pension scheme for people on low and middle incomes under the supervision of the NTMA. Based on its recent action, is it the appropriate agency to care for pensioners?
When is our Government going to pick the abundant low -hanging fruit enjoyed by the wealthy in our society and leave the poor alone? – Yours, etc,