Economist seeks top-rate tax relief on all private pensions
Friends First economist Jim Power has called on the Government to introduce top-rate tax relief on all pension contributions.
Mr Power said today that efforts to increase the number of workers with pensions had not been very successful and tax incentives could be one way to address the problem.
"At the moment, lower-income workers will get marginal tax relief of 20%, whereas high-income workers will get 42%," he said.
"I think there should be a standard rate of relief of around 42% for all workers, regardless of income levels, and I think that would encourage lower-paid workers to take out greater pension coverage."
The issue of pensions has come the fore in recent years due to Ireland's growing and ageing population.
The State is unlikely to be able to meet the needs of pensioners as more people retire and live longer, so private pensions are now seen as a necessity for all workers.
