SSIAs

The SSIA incentive was a hugely successful savings program. We have learnt the savings habit (as a nation) let’s continue with the effort and take time to evaluate the options available before deciding what to do with the available lump sum from a maturing SSIA Account.

There are two significant considerations:

• What will I do with the lump sum on maturity?
• What is the best means of continuing to save for the future?

Lump Sum

There are a number of options concerning what to do with the available lump sum. But this can be reduced to the most basic choice of whether to re-invest the lump sum or spend it on something else (including clearing debt).

The fact that you have already built up a lump sum means that if reinvested, it will get a compounded rate of investment return that will quickly help the fund to grow even further. It would take far longer to commence a new plan to catch up with the lump sum you have already built up.

Before spending the lump sum speak to us about the options available to you.

Continuing the saving habit

You have proved that you can save a regular amount each month. It is extremely important that you continue that savings habit. Should you continue your existing plan or commence a new plan? Should you consider starting a pension?

The table below shows the benefits of starting a pension plan for the net equivalent cost of €254 per month for a standard rate and higher rate tax payer versus saving in a normal savings account with no tax relief.

Pension v. Savings Plan

Difference after 20 years.

Assumptions

6% p.a. investment growth.
Eagle Star's Standard PRSA used for pension Illustration.
Premiums increase by 3% per annum.

Speak to us first before making a decision. It may be possible to get an improved contract offering from us than available from the Institution with whom you took out the SSIA. We can offer professional advice on a full range of funds and products. We are not limited to one product offering like most of the banks.