1% life assurance levy ‘will hit pension savers and investors’

THE proposed 1% levy on life assurance premiums set to be introduced at the start of next month, has been condemned by Standard Life.

The levy will apply to premiums received by an insurer on or after June 1. The levy was announced in the April budget and is expected to raise €83 million this year and €140m in a full year.

Commercial director with Standard Life Nigel Dunne said the levy ran the risk of killing off interest from hard hit pension savers and investors. He said the average pension saver and investor has lost around 30% of savings in the last 12 months.