Buy a house with your pension, vows Varadkar
THE prospect of people being allowed to use private-sector pensions to fund major life investments, such as houses or career breaks, is closer after opposition reaction to plans floated by Social Protection Minister Leo Varadkar.
Speaking to the Irish Mail on Sunday, Fianna Fáil’s finance spokesperson Michael McGrath welcomed Mr Varadkar’s commitment to drive a major reform of private-sector pension provision.
Mr Varadkar pledged to finally tackle the country’s pension crisis by establishing a ‘personal future savings account’. Under the plan, employers and employees would both pay in and the fund would also be topped up with tax relief.
The minister also proposes to allow people to use their pension pots to fund major events, such as buying a house or a career break.
Mr McGrath said: ‘We welcome moves towards resolving this looming crisis; we need to see more of a pensions pot sustained by a stable pensions policy.’
He welcomed what he described as ‘the U-turn on being able to access pension pots in times of crisis’ and noted: ‘This Government has opposed several attempts by Fianna Fáil to allow pensions be accessed after redundancy or in cases of mortgage arrears.’
Fianna Fáil social protection spokesperson Willie O’Dea, said: ‘We welcome any activity on this, although the Government has come very late to the table. We want to see the colour of their money now.’