Contributing to the newly announced Government savings scheme is a “no brainer” for farm families who want to save for their children’s education.
That’s according to Emer Smyth from FBD, who was speaking alongside Eimear Ryan from ifac with Irish Country Living editor Ciara Leahy during the ‘Money In Your Pocket’ slot at the 17th Women & Agriculture conference, taking place in the Radisson Blu Hotel, Little Island, Cork, on 29 October.
She was commenting on a query asking whether the Government savings scheme announced in the recent budget could be an alternative to a regular savings plan for their children’s education fund.
Emer Smyth’s answer was a definite yes from a tax point of view and it is a “very good option for long-term saving”.
“It’s due to be launched on 1 July 2027. We don’t have all the details yet, but really it is a tax-free policy for up to €50,000. After that, there is a flat annual tax of 1%, which is very little," she said.
"We all want to save money on tax, so it’s a no-brainer," Emer told the 600 women in attendance.
She is hopeful that many people will join the scheme and is encouraging people to talk to their financial adviser about how it works for them when it launches this summer.
\ Claire Nash
“There are a lot of people saving the children’s allowance in the banks and credit unions. There’s nothing wrong with those saving policies for short-term savings, but if you’re saving for 18 years-plus, you need to get a return above inflation.
"Inflation runs at about 4.1% per annum, so if your money is not making a higher return than that, well, then your money is subject to an inflation risk. Over an 18-year or 20-year period, that can be huge,” she concluded.
