Ark Life: SSIA holders should be given incentives

The Government should reward SSIA account holders who transfer their savings into a pension fund.

This could be done by additional tax-relief or the provision of a lump-sum pensions top-up, according to Ark Life managing director Billy Finn.

It would also have the added effect of preventing overheating in the economy and higher inflation when the SSIA accounts mature in 2006.

Finn made the call as Ark Life released its 2003 figures today. The sales of its life assurance and pensions products come in at €103.7m in 2003, down from €162.1m in 2002.

However, when the sale of SSIA products are stripped out of the equation for 2003 and 2002 the sales figures come in at €102.2m and €99.9m respectively.

While PRSA’s are beginning to have an impact on the Irish market, Finn pointed out that just 50% of the Irish workforce currently have a pension plan.

Ark Life now has 24% of the PRSA market and 30% of employer PRSA ‘designations’ and Finn believes it is in a strong position to consolidate its PRSA presence during 2004.