Claims on pension returns

EXPERTS have claimed that pension savings can be up to four times better than bank deposits.

Recent reports suggest the Irish public are continuing to put more and more of their cash on deposit.

Pension experts are urging people to continue the savings habit but redirect some money to pension funds, through a pension top-up or an additional voluntary contribution (AVC).

Actuary and head of business development with Acorn Life, Keith Butler said: “As we emerge from this recession consumer confidence is growing, admittedly at a slow pace.

“In recent months we have noticed greater confidence among pension holders, with a higher proportion now willing to switch some of their monthly savings to additional pension contributions.

“It appears that many of those who have remained in employment have accumulated significant savings and are now feeling more confident about their financial future. This could be attributed to one of two factors: either they believe the worst is over economically or they have now amassed sufficient savings to get them through a redundancy or similar financial set back,” he said.

Acorn Life said €100 on a bank deposit with 1% interest would amount to €122 over 20 years while a pension investment at 5% growth, assuming 41% tax relief, would total €450 in that time.