Pension measures 'will disadvantage self-employed'

Financial services company, Deloitte, have said the pension measures announced in today's budget will hit the self-employed.

The Minister for Finance's reduced the earnings cap on pension contributions from just over €275,000 to €150,000.

Deloitte Pensions & Investment said the move will disadvantage the self-employed and also those who have delayed pension planning until later in life.

Mr Ian Mitchell, managing partner, Deloitte Pensions & Investment said: "The measures announced widens the gap for the pension provision that is available to the self-employed versus those who are members of employer sponsored pensions schemes in both private and public sector organisations.

"This creates an unfair system for those who are self-employed, simply because employer contributions to pension schemes are not similarly restricted.

"Similarly, those earning over €150,000 who have delayed their pension planning will also be caught on the back foot.

"This points to a need to consider simplifying the system in a similar fashion to the system that has been adopted in the UK, which allows everyone to contribute to the maximum cap irrespective of earnings."