Call For Government To Act Urgently On Funds Review To Address Poor Savings Rates For Consumers – Brokers Ireland
Fri Apr 4 2025
Press Release
Friday 4th April 2025
Responding to publications by the Central Bank today showing 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, Brokers Ireland called for the urgent implementation of the recommendations of the Funds Sector Review.
Rachel McGovern, Deputy Chief Executive at Brokers Ireland, said the Funds Review published by the Department of Finance in October last recognised the reality that there are massive tax disincentives in the Irish tax system that dissuade people from opting into better value savings products.
“The figures in today’s study are stark. Delaying giving effect to the Funds Review recommendations, which are in line with the objectives of the EU Savings and Investment Union, contributes to bad outcomes for consumers,” she said.
The Funds Review recognised the need to reduce the 41% tax rate on gains from life assurance savings and investment policies to the Capital Gains Tax rate of 33% applying to stocks, shares and property, she said.
It also recommended that the 1% Life Assurance Levy should be abolished, a commitment also in the Programme for Government 2025. Introduced as a temporary measure in 2009, it is unique to savings made in life assurance policies.
“This has become a significant burden on personal investment in life assurance policies,” Ms McGovern said.
She said the Government needs to act urgently to ensure consumers are being treated equitably and that they are being informed about the benefits of putting their savings in longer term investment products.
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.
Further information: Rachel McGovern, Deputy Chief Executive, Brokers Ireland Tel. 086-8259938
Mairéad Foley, Foley Ryan Communications Tel. 086-2556764
