Michael McGrath (Cork South Central, Fianna Fail)
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89. To ask the Minister for Finance his plans to change the maximum pension fund limit of €2 million; and if he will make a statement on the matter. [43771/19]

Paschal Donohoe (Dublin Central, Fine Gael)
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The Standard Fund Threshold (SFT) is the maximum allowable pension fund on retirement for tax purposes which was introduced in Budget and Finance Act 2006 to prevent over-funding of pensions through tax-relieved arrangements. The threshold was initially set at €5 million, which was subsequently reduced to €2.3 million in 2010 and further reduced in Budget 2014 and Finance (No 2) Act 2013 to €2 million with effect from 1 January 2014.

I believe that the €2 million threshold represents an appropriate level at which an individual can provide themselves with an adequate income into their retirement. This threshold strikes a balance between incentivising individuals to save for retirement to a reasonable limit, and deterring individuals from targeting tax-relief to over-fund pension funds.