Savers in line for a windfall from the Government-backed savings scheme were today urged to cash-in on pensions.
As another tranche of Special Savings Incentive Accounts (SSIA) matured, Minister for Finance Brian Cowen called upon savers to consider putting money into the new Pension Incentive Scheme.
Mr Cowen said the scheme, introduced in the 2006 Finance Act, had been brought in to encourage those on more modest incomes to continue the savings habit and place some or all of their SSIA proceeds into it.
The Exchequer will contribute a tax credit of €1 for every €3 invested, up to a maximum of €2,500, in an approved pension product along with a refund of a proportion of the tax deducted from the SSIA account at maturity.
Mr Cowen said the investment in the pension product must be made within three months of the SSIA account maturing to reap the full benefits.
To qualify for the scheme any investor's gross income must not exceed €50,000 in the year prior to that in which the SSIA matures.
In order to avail of the incentive scheme, an investor has to forward an SSIA Maturity Statement to a pension provider together with the pension contribution.