An end to pension levy announced

The reduction in the controversial pension levy which has siphoned more than €2bn from private sector pensions in the past four years was universally welcomed yesterday.

Finance Minister Michael Noonan announced that a reduced charge of 0.15% would apply to private-sector pensions from the beginning of 2015, with the levy being abolished entirely at the end of next year.

The phasing out of the measure will provide savers with greater certainty and encourage additional workers to save for their retirement, according to Joyce Brennan, partner with financial services firm Mercer.