Wednesday, 27 February 2013

Questions (81)

David Stanton


81. Deputy David Stanton asked the Minister for Finance if he has considered introducing legislation to allow indebted persons with supplementary private pension coverage early access to a proportion of their retirement savings; and if he will make a statement on the matter. [4044/13]

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Written answers (Question to Finance)

Finance Bill 2013 provides that persons making Additional Voluntary Contributions (AVCs) used to supplement their main scheme retirement benefits can withdraw up to 30% of the value of those contributions. Any amounts withdrawn will be subject to tax at the individual’s marginal rate. The option will be available for 3 years from the passing of the Finance Bill. This is a restricted measure which will enable rather than incentivize certain individuals to access part of their pension savings beyond their regular or compulsory pension contributions. I do not wish to damage future pension provision and it is important that individuals continue to provide for their retirement. For these reasons, I have no plans to extend the measure beyond AVCs.