A new study of butchers, florists and hairdressers has found that 60% of those surveyed had little or no knowledge of current tax incentives for pensions.
The study was commissioned by the Irish Association of Pension Funds from 170 respondents. The sample was chosen because the service sector is under-represented in pensions coverage.
Of those without a pension, 62% said they were more likely to start a scheme if tax relief were available at the higher tax rate of 41% for all. Those on lower incomes get tax relief only on 20% currently.
Almost 40% of those without a pension had contributed to an SSIA savings scheme. IAPF chairman Patrick Burke said this suggested 'huge potential' to improve pensions coverage is incentives were simplified.
The survey also showed that those questions were split down the middle on whether some sort of mandatory pension contribution should be introduced.
