The Consumers Association of Ireland has criticised the response of the pensions sector to the "revolutionary changes" being introduced by the Minister for Finance, Mr McCreevy.

The association said the "industry tactics appear to be based on frightening people" and advised people to fully examine all the choices which will presently become available "rather than confining their research to what the industry is currently saying".

The association said the changes being introduced mean a consumer can "contribute up to 30 per cent of earnings into tax exempt gross roll up funds, claiming full income tax right up to the age of 75 years if required."