ESRI warns of SSIA inflation threat in pre-Budget report

THE Government should not extend the life of Special Savings Incentive Accounts (SSIAs) beyond 2007 because it is too expensive, the Economic and Social Research Institute (ESRI) warned yesterday.

The ESRI said it was “not sensible” to continue the “expensive scheme” as there is no certainty the economy can afford to continue contributing to the accounts.

The warning follows calls for the Government to allow SSIA holders to transfer their cash into pension funds with the State still making payments.