Differing SSIA returns 'set to spark questions'

There will be discontent among SSIA holders when major differences emerge between savers' returns, the country’s largest group of independent brokers has warned.

The Professional Insurance Brokers Association (PIBA) said the 10% of savers who invested through independent financial advisers would see a far greater return on their investment than the 90% of savers who invested in low-yielding bank savings accounts.

“When people discover that a similar amount invested can yield very different results, they are going to ask questions, and rightly so,” said the organisation’s newly-appointed chairman Liam Carberry.

“A saver with the maximum SSIA of €254 a month will generally receive about €26,101 before tax while a bank saver with the same amount invested will generally receive €21,140 before tax.”

Warning that bank savers are getting a very raw deal, Mr Carberry called for a good quality basic financial model to be introduced into the school curriculum at both primary and secondary levels.

“Consumers must be educated to a higher level about the realities of finance,” he added.