Third Pillar Pensions: a first step?

The  Bill  amending  the  Social Security Act  to allow  third pillarpensions – making it possible for people  to  voluntarily  take  up  a private pension  to  top  up  their State pension – was approved by Parliament last month.

Under the new law

• An individual may invest up to a €1,000 in an Individual  Savings  Account and benefit from interest earned from the investment in interest bearing securities/deposits without deduction of withholding/tax; and up to €1,000 in a Personal Retirement Scheme and benefit from a tax credit not exceeding €150 for every €1,000 invested during any one year.
• Couples will be treated as two individuals and may invest €2,000 in each scheme.

As reported by  Business OBSERVER
December 4, 2014 by Anthony Manduca