Oppenheim call for new saving schemes

Oppenheim Investment Managers have urged the Government to encourage people to continue saving.

Kevin Gallacher, managing director, Oppenheim Investment Managers, said: "The Government may argue that it would not be wise to commit to another five years of guaranteed 25% top-ups, but a tax-incentivised saving scheme doesn’t need to involve government rebates. There is a similar scheme in place in the UK at present that could act as a model for Ireland."

The ISA scheme operates in the UK. This allows individuals to invest up to £7,000 (€10,230) per annum in a savings account that is subsequently allowed to grow tax-free.

Oppenheim argue that the benefits of such a scheme, in terms of taking some froth out of the economy, diverting money away from the inflated housing market, counter-balancing high levels of personal debt and providing individuals with savings for a rainy day, would outweigh any cost.

Oppenheim manage the top performing group pension fund in Ireland over ten years, with returns at 11.8%, some 2.5% above the average return (as of 31st March 2007).