SSIA tax would have little impact

SCRAPPING the exit tax on Special Savings Incentive Accounts (SSIAs) for account holders who switch their funds into a pension would offer a maximum one-off incentive of just €250, or less than 1% of their savings.

Many banks, life assurance companies and other pension providers have called on Finance minister Brian Cowen to use the end of the SSIA scheme, which begins to unwind next April, as an opportunity to convert the money saved into pension funds.

They have asked the minister to consider waiving the exit tax that will be applied on all SSIA holders when they withdraw their funds at the end of the scheme.