Pension tax relief 'may lead to 2,000 job losses'

Standard Life Ireland have said that a proposal to reduce the pension tax relief from 41% to 33% could mean 2,000 job losses.

Nigel Dunne, distribution director at Standard Life Ireland said: "The proposal to reduce pension tax relief from 41% to 33% could prove to be a 'killer blow' for thousands of hard hit pension savers in the December 9 Budget.

"It could prove to be the last in a series of disincentives that proves the tipping point for pension savers and a vulnerable industry.

"Marginal rate savers will lose one third of the value of current reliefs if the Government persists with a 33% single relief rate which excludes PRSI and levy relief on pension contributions."

Standard Life believes the ESRI’s view that eliminating or reducing pension savings incentives would have no impact on higher rate taxpayers savings levels is "wishful thinking".

Mr Dunne said: "We find the ESRI view surprisingly misguided and in denial of economic realities.

"A policy promoting adequate pensions coverage is vital to the social and economic future wellbeing of this State, with an ageing population, surely this should be one of the primary ESRI policy goals.