The Bank of Ireland has proposed a new pensions product aimed at increasing the State’s low national pensions coverage.
The bank says its Bonus PRSA combines the success of the SSIAs with the lessons learned from the introduction of PRSAs.
It says the Bonus PRSA reverses the way tax relief, already available on pension contributions, is applied to pensions into a tax bonus.
"This makes the incentive for long-term saving easier to understand for consumers, with no additional cost to Government," the bank claims.
Higher income earners would claim their additional tax relief at the end of the tax year.
Consumers could potentially access 20 per cent of their fund after five years and an additional 10 per cent after ten years, subject to exit tax, the bank says.
The banks says the deadline element of the proposal gives consumers the motivation to start their Bonus PRSA once their SSIA matures so that they can continue their savings habit.
