Brokers challenge pension analysis

Dublin: The Professional Insurance Brokers Association (PIBA) has strongly challenged the ESRI on the effects of changes to pension tax reliefs, by saying that it was based on “theory rather than an understanding of consumer behaviours”.

Diarmuid Kelly, PIBA’s chief executive, said it would appear that the ESRI’s analysis failed to take account of the fact that consumers are already cutting back on pension contributions.

“Our members are reporting major cutbacks in pension contributions. If this change is implemented, it will have a devastating effect on pension provision in Ireland.

“It is astounding that a misconception that the current pension tax relief system is, in effect, a tax break for the wealthy, could gain such momentum,” he said.