Policy changes to ‘impoverish middle classes’

IN a separate response on the pensions market in Ireland, the industry in a joint statement warned that some of the proposed pension policy changes, if introduced, would “impoverish” the middle classes.

The pension fund providers in Ireland, including Aviva, have condemned the proposed reduction in income tax relief for hard pressed pension savers.

Commenting on the Government’s National Pensions Framework (NPF) document, they condemned the Government’s proposal to reduce income tax relief for (predominantly middle class) pension savers to 33% from the current 49%. Such action “will impoverish middle class people.”