McCreevy heir ‘must encourage SSIA investors to put savings into pensions’

THE next Finance Minister must prepare a strategy to encourage Special Savings Investment Account (SSIA) investors to pump most of the E15 billion savings into pensions, a leading economist advised last night.

Friends First chief economist Jim Power said Finance Minister Charlie McCreevy’s heir must also make it far more attractive to low-earners to take out Personal Retirement Savings Accounts (PRSAs) to prevent workers hitting the breadline when they retire.

Mr Power says Mr McCreevy’s successor will have an unique opportunity to boost workers’ private pension cover by making it possible to divert SSIA savings into pension funds on a tax-free basis, over and above existing provisions.