Monday, August 25 15:50:35
October's Budget 2015 is a golden opportunity for the Government to bring in an auto-enrolment pension plan for all in the private sector.
Pensions industry expert James Kavanagh says now is the ideal time for Tanaiste and Minister for Social Protection, Joan Burton to consult with Minister for Finance Michael Noonan with a view to considering the reduction of the Universal Social Charge for all tax payers.
These funds could be diveredt into an auto-enrollment plan for pensions within the private sector, he said. "Taxpayers have got used to paying the USC since it was first introduced and my view is that those hard pushed tax payers would benefit more if their tax money was being diverted into something meaningful for them, which will benefit them during their retirement years," said Mr Kavanagh.
Currently 50pc of private sector workers have no provisions made for their retirement apart from the state benefit, which will be insufficient and will create a further burden for the state in the years to come.
According to James Kavanagh, "Now is an ideal opportunity to put corrective measures in place to ensure that in the longer term there is better provision for those who have served the private sector".
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