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A Royal London survey shows women, rural residents and older people are least likely to invest in Ireland's proposed Personal Investment Accounts. Men expect to invest €893 per month on average compared to €240 for women, and just 9 per cent of 18 to 24-year-olds plan not to invest versus 32 per cent of over-65s. The government says the budget will set out the tax-free limit, tax rate and annual investment cap for the scheme, which aims to encourage a shift from low-yield deposits into productive investments. PIAs are forecast to see strong take-up but concerns remain over equal access for women.
Royal London survey says women, those living in rural areas and pensioners are least likely to investfound. A further 14 per cent say they will put between €250 and €500 a month into the accounts when they are available, with 15 per cent intending to invest even higher sums.says, will allow some people to invest without paying tax and will see others paying a low rate of tax on their savings.
What the tax-free limit is, the tax rate and the upper limit on how much you can invest each year will be outlined in the budget, the Minister has said. Why am I being charged PRSI when I am on the State pension? The number declining to invest rises among women and also among those living in rural areas, where one in five does not expect to take part.
Apart from being more likely to invest, men say they are likely to put more into any scheme than women, something that may be influenced by the greater number of women in part-time employment or working in the home. While the average figure for expected monthly saving was €559 – or around €6,700 a year – that rose to €893 a month among men who responded to the survey compared to €240 among women.
Younger people said they were more likely to engage in the scheme. The lowest number for those not intending to invest was among 18 to 24-year-olds at 9 per cent compared to 32 per cent among those over the age of 65.
“There is likely to be strong take-up of PIAs ,” Royal London chief executive Noel Freeley said. “The Government’s proposed simple, tax-efficient investment account is long overdue. There is a compelling need to incentivise people in Ireland to move money from low-yield deposits into productive investments.
“It is important that women have the same opportunity to benefit from the proposed investment accounts as their male counterparts,” the Royal London boss said. “When launching the scheme, the Government will need to be mindful of the gender investment gap and to take steps to help bridge that gap, possibly through education which highlights the benefits of the scheme and by putting in place initiatives which will help to realise the full benefits of PIAs.
” He said similar schemes in Sweden and the UK – on which the Irish structure will be based – are being used by around 40 per cent of the local populations “which is proof of the popular appeal of such schemes and their potential to have a positive societal and economic impact”.
“Ireland has an opportunity to design a simple, modern investment account that is open to everyone and it’s important that the Government grabs this opportunity and lives up to its promise,” Freeley said. Have State savings and prize bonds become more attractive? MOST READ A Wicklow woman in Marbella: ‘I would make friends in the summer and they would then go home.
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