Brokers Ireland Calls Out Heavy Losses For Consumers On Savings And Investments Arising From Government Policies
Thu May 8 2025
Press Release
Thursday 8th May 2025
Organisation Appeals to Government to implement its own Funds Review Report
Separate reports by the Department of Finance and the Central Bank indicate the high level of losses consumers are facing as a result of outdated and discriminatory Government policies, Brokers Ireland said today.
Calling on the Minister for Finance to implement its own Funds Review Report from October last, Brokers Ireland said that very report indicates that the 1% Life Assurance Levy introduced in 2009 as a temporary measure to address the serious decline at that time in the public finances cost consumers €33 million in 2023 alone.
And a recent Central Bank report found Irish households’ preference for shorter-term, more accessible deposit account types relative to average euro area has cost them almost €800 million in unearned interest in 2024 alone.
Rachel McGovern, Deputy Chief Executive at Brokers Ireland, said: “When account is also taken of the fact that a 41% tax rate applies on gains from life assurance savings and investment policies in contrast to the Capital Gains Tax rate of 33% applying to stocks, shares and property, one can see that the situation is particularly costly as a result of discriminatory tax policy.”
She said these are monies consumers are losing out on every year. And all of them, and others, are acknowledged in the Department of Finance’s Funds Review Report as worthy of change, in line with the objectives of the EU’s Savings and Investments Union.
“This has seen member states called upon to make their personal income tax regimes more supportive of investments in capital markets, and therefore, more rewarding for consumers,” she said.
“Sound investment should be encouraged, not discouraged as it is with current policies or lack of them,” she said.
She said there is already a good structure with life offices for consumers to access impartial advice on investments, including access to European funds.
Ends
Note: Brokers Ireland operates the ‘Future Financial Experts’ Transition Year programme aimed at communicating good financial skills to students and creating awareness around financial concepts.
