Third Pillar Pension Tax Benefits Extended To Certain Insurance Products

The framework for third pillar pensions was announced during the last Budget in November however since then no products have been launched. The tax benefits for third pillar pensions have been extended to be applicable to certain insurance products in order to incentivise providers.

The prospective providers beneath this new framework will be able to include the tax benefits within their existing products and will not have to invest heavily in new products. Several product providers' concern was that the €150 per annum of tax credit was not attractive enough to attract non-savers to start saving. This would mean that most of those who make use of the existing scheme would be existing savers who would switch their insurance production order to gain the benefits.