Cut private pension tax relief, urges support group

TAX relief on private pensions should be cut in the budget in preference to reducing the state pension, campaigners for older people said.

The Older and Bolder Alliance of voluntary groups said part of the €4.3 billion annual cost of the state pension could be funded by clawing back some of the tax reliefs on private pensions. Alliance director Patricia Conboy warned that 85% of older people would be in poverty without the state pension and other welfare supports, and to cut the pension risked tipping tens of thousands over the line.

“Tax reliefs on private pensions cost €3bn and give the greatest level of support to those with the highest levels of income. In terms of both equity and efficiency, the focus in the budget should be on reform of tax reliefs rather than cuts to the state pension.”