Pension levy will cost workers €9,000

The Irish Association of Pension Funds has warned the Government that the continuation of the pension levy will be to the detriment of the pension industry, as a separate report indicated workers would be more than €9,000 out of pocket by the time they retire as a result of the scheme.

A survey carried out on behalf of the Professional Insurance Brokers Association indicated that if the levy were to continue at a rate of 0.15%, the level expected to apply for next year, the average loss of savings to a worker at retirement age would be €9,500.

As part of last year’s budget, Finance Minister Michael Noonan increased the original 0.6% levy to 0.75%, and indicated the rate would fall to 0.15% for 2015.