Vol. 576 No. 6
31 Mr. Quinn asked the Minister for Finance the number of special savings investment scheme accounts opened at the latest date for which figures are available; the average amount of savings per investor per month; if, on the basis of such figures, his Department can now give a definite figure for the likely cost to the Exchequer of the special savings investment scheme; and if he will make a statement on the matter. [30102/03]
I am informed by the Revenue Commissioners that, based on the 2002 annual returns furnished by all qualifying savings managers, the total number of active accounts at 31 December 2002 was 1,143,418 and the average monthly subscription was €158. It is not possible to give a definitive answer as to the eventual cost of the scheme as it is subject to a number of variables such as where participants die, withdraw from the scheme or vary their monthly contributions. If the current average monthly payment based on subscriptions to the scheme to 31 October 2003 continues for the full year, the annual cost in 2003 would be about €530 million. This, however, is not a conclusive figure, and the final figure may be different than that, if account holders change their monthly contributions. The total gross cost over the period of the scheme will be reduced by the exit tax to be received at the end.
I would like to point out that the special savings incentive account scheme was designed to be available to as many people as possible. Its success is reflected in the 1.17 million people who have opened an account. The minimum contribution was set at €12.50 per month, which is approximately €3 per week, in the hope that this would encourage widespread participation in the scheme, including social welfare payment recipients and those on limited incomes.
Based on the analysis of the 2002 returns, the proportion of investors saving at the maximum level was 38% and the proportion at the minimum level was 2%. The monthly subscription levels at 31 December 2001 and 31 December 2002 are as follows:
|
Monthly subscriptionlevel |
At 31/12/2002 |
At 31/12/2001 |
|
% |
% |
|
|
Minimum €12.50 |
2 |
2 |
|
€12.50-€59.99 |
19 |
11 |
|
€60-€149.99 |
30 |
28 |
|
€150-€253 |
11 |
6 |
|
Maximum €254 |
38 |
53 |
|
Income Category |
Income Range(based on income levels for 1999/2000) |
% of account holders 2002 |
% of account holders 2001 |
|
€ |
|||
|
Low |
20,000 |
45 |
40 |
|
Medium |
20,000-50,000 |
42 |
45 |
|
High |
50,000 |
13 |
15 |
