The Government should look at developing a successor to Special Savings Incentive Accounts (SSIAs) that would combine saving with pensions, according to Irish Life & Permanent (IL&P) chief executive David Went.

Work must be done to ensure that the savings habit that has been developed with SSIAs is maintained when they mature, he said yesterday.

"One of the things that puts people off pensions is the inability to get money out," said Mr Went.

He suggested that a new-look pension structure could allow access to a certain percentage of funds saved after five years. In this way, younger people could be encouraged to save for retirement and help to raise overall pensions coverage, he said.

Mr Went was speaking after IL&P's annual general meeting in Dublin, at which shareholders heard that the group had enjoyed a good start to the year, both in its life and banking businesses.

The group's chairman, Gillian Bowler, said that business was "very satisfactory" across both divisions as they continued to benefit from economic buoyancy and, in particular, the strong employment growth seen in the Republic.

Responding to a shareholder question on the group's decision not to write to its customers in relation to the Revenue Commissioner's investigation into life assurance products, Ms Bowler said that IL&P had fulfilled all of its tax requirements.

There had been a "difference of opinion" with Revenue on the matter, she added, with the company having concerns about writing to customers who had no tax issues.

"In due course, I'm sure the Revenue will approach this using the substantial powers they already have," Ms Bowler said. "We believe the appropriate procedures should be adopted."

She confirmed that a Revenue application to the High Court for access to Irish Life's records will not be opposed.