Further blow to workers’ pension tax relief

THE Government’s proposed cut in pension tax relief will hit as much as 90% of all worker pension contributions, and not just the wealthy segments of society, one industry representative group has suggested.

The cut in pension tax relief to 33% (for those who pay tax at the 41% rate), suggested earlier this year as a feature of this December’s budget, could end up costing workers up to €100,000, according to the Irish Brokers Association.

“The Government claims that this proposal is intended to assist lower- to-middle income workers improve their post-retirement income and to ensure that similar options are available to all groups of employees,” said the association’s chief executive, Ciarán Phelan – who went on to call the cut a “smokescreen”.