What will happen the SSIA money ?

According to the paper today there are 1.14 million paying in an average of 150 euro a month into the SSIA's which if it continues along the same lines there could be 13 billion coming on the Scene in 2006.

What effect will this money have on the country ?

SSIAs

Assuming 100% cash in year 5. What are the chances of that?

Guess

First there'll be an election with the FF'ers claiming their Santa. Charlie will be in a red suit, with Bertie on his lap in school shorts. Then they'll cook up a new wheeze to double up the money for the next election.

NOT 100%

Not all SSIA's will run the course, alot are equity based and will be running for 7 years ot more and not every one will cash in, also they mature over 12 months, they were not all taken out on the same day, it will be more gradual, but ... there will be alot of '06's around and maybe a baby boom !!

Re: NOT 100%

Watch out for inflation on prices of widescreen TV's, home cinema, conservatories and new cars as people splurg their savings.

Re: NOT 100%

I'll be very interested to see in the year after the SSIA's mature, does consumer debt increase or decrease.

It'll say a lot about our collective financial responsibility.

-Rd

Re: NOT 100%

I think "trading up" houses will increase in price. I would also predict inflation in the cost of conservatories, extensions, kitchens and the like.

Re: NOT 100%

It is actually a bit sick when you think about it. I hadn't considered the fact that National Schools are falling apart with no solution in sight, funding for various social programs has been cut way back, and yet we can predict with a fair amount of certainty that in a few years a huge lump of cash will be splurged on Conservatories, Wide Screen TV's, New Cars, Holidays etc..

It'll be like a big National Shopping Spree. I feel ill.

At least VAT receipts will be up, and will probably recoupe some or all of the money the government gave away.

-Rd

VAT Increase

What about a vat increase in the year before the SSIA's mature? That's one way to recoup the cash.

ssia's

Hmmm.....One thing that stops people trading up is prohibitave stamp duty. Maturing SSIA's may provide some people just the ticket!

SSIA's

And oh yeah, the government gets their money back!

SSIAs should be allowed to be "rolled over" into a

Des Geragherty - the trade union guy suggested on radio few weeks ago that SSIAs should be allowed to be "rolled over" into a PRSA. This stuck me as a rather good idea.

A.J.A Pale

Re: SSIAs should be allowed to be "rolled over" in

I have read in the papers this weekend that many indiviuals are not eligible to open a PRSA, eg if their employer offers AVCs. I agree some sort of roll-over would be good but I think it should be something that is available to everyone with a SSIA.

Rolling over SSIA....

Why do SSIA holders need permission to invest in a pension plan? They should just take the value of the Account at the end of the five years and invest it in a pension - and claim tax relief if applicable. This doesn't require anything from the government as far as I can see. Also unless the fund managers are really stupid (which I'm reliably informed they are not they will have incentives for people to put there monies with them at that time as otherwise they will be losing a lot of the monies currently invested with them at this moment in time.

The really interesting question IMHO is will those who allegedly have been really smart and are constantly being praised by the media for investing in a fixed rate account stick with it - or will they move to "real" asset class investments. I wonder if anyone will be sueing the media for "mis-selling" in the future Of course complicated stories are difficult to sell......

Roll SSIA into prsa before the 5 year maturity

I think the original suggestion was to allow the SSIA to be converted to a PRSA *before* maturity without penalty. I think there was also an implictit suggestion that the government might provide some incentive for this.

Im inclined to think it is not a runner since the best returns are for the the investments in the last few months. Also many would consider SSIA holders have been incentified enough already.

Also some SSIA holders are already pensioners and others are not wage earners and would not be able to get tax relief.


ajapale