Richard Bruton (Dublin North Central, Fine Gael)

I accept that there are complexities involved and that people can make bad investment decisions or that things could go wrong. However, they should be given a choice. Why are the self-employed given a choice — clearly, people value that choice — while PAYE employees are not? This smacks of some form of paternalism, particularly when one considers that the annuity relating to some funds is only 3.6% per annum. For all the money one accumulates, therefore, one gets only that amount per annum. That is a hopeless return in the context of all the savings in which one might engage.

There is also the argument that people enjoy flexibility if they have access to a fund. They have choice but they also have the flexibility to do different things with the capital they have accumulated. We are going to be obliged to inform people that they must give more serious consideration to saving for their retirement. They would do so if there was a degree of flexibility. It should not be the case that individuals feel they are throwing money down a black hole and will never see it again except in the form of a slow release payment when they reach retirement age. As the song goes, "That don't impress me much". I do not believe people will be encouraged by matters as they stand.

We must treat people in a mature way. We must give them the same choices as those given to the self-employed and provide them with flexibility regarding the way in which they wish to use their money. What I am proposing represents a positive change and it would not involve a cost to the State. I accept that there are other things on the balance sheet which must be weighed up. However, I am of the view that the Minister will adopt what I am proposing in due course. Why not take our courage in our hands and do so now? The outlook in respect of this change is positive. People would not be locked into it and they would still be in a position to purchase annuities if they so choose. Notwithstanding the fact that people might make bad decisions, they should be given a choice and allowed to proceed on that basis.

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