Cowen to unveil new SSIA-linked pensions initiative

Minister for Finance Brian Cowen is expected to announce a new scheme today aimed at encouraging people to reinvest their SSIA savings in a pension.

The minister is expected to offer a bonus payment of around €2,500 to people on the lower tax rate who reinvest €7,500 in a pension scheme.

The measure is expected to be included in the Finance Bill and is designed to boost the low rate of pension coverage.

With Ireland's population getting steadily older, the State is unlikely to be able to pay adequate pensions to the huge number of workers who have no private coverage.