Colette Fitzpatrick of TV3's Midweek programme last night looked at why so many people have lost money on their pension since the financial crisis and where exactly they gone.
Aidan McLoughlin was interviewed on the recently introduced pension levy. Based on our experience of temporary levies, Aidan commented that the four year levy may well become a permanent tax. He also commented on the unfairness of the pensions levy as it only applies to those who are now working. The bankers, property developers and politicians who created the current situation are not subject to the levy.
Aidan also noted that there are real concerns that the level of pension coverage in to the future could fall dramatically. The government's answer to this seems to be mandatory pensions. However, experience of nations that have taken this approach would suggest that it does not work. Invariably what happens is that people treat mandatory schemes as tax and so put in the minimum amount required. Obviously, this would not be an ideal outcome.
Click here to hear the full show. The pensions section starts at 17.30 minutes. Aidan is on at 19.25 minutes and again at 22.20 minutes.
