Does Ireland Need a New Savings and Investment Account?
Ireland Does Not Have an Investment Product Problem. It Has an Investment Policy Problem.
By Niall O’Connor CFP®
Ireland already has a wide range of regulated investment products. The real barriers to investing are complexity, taxation and a lack of confidence. A new Savings and Investment Account may help, but it cannot replace meaningful reform of Ireland’s investment tax system.
Over recent months, we have heard a great deal about the proposed introduction of a new Savings and Investment Account in Ireland.
It has been discussed across the media and promoted extensively on social media. Judging by some of the commentary, you could be forgiven for thinking this new account will finally get Irish people investing.
Having spent more than 20 years advising individuals, families and business owners across Ireland as a Certified Financial Planner™ professional, I see the issue differently.
I welcome any initiative that genuinely encourages people to invest and build long-term wealth. However, Ireland’s biggest investment challenge is not a lack of products.
The investment solutions already exist.
What is Ireland’s proposed Savings and Investment Account?
The proposed Savings and Investment Account is intended to provide Irish savers with a simpler way to invest for their future.
Its final structure, investment options and tax treatment have not yet been confirmed. However, the overall objective is to encourage more households to move some of their long-term savings from deposits into investments.
That is a worthwhile objective, but creating another account will not address the reasons many Irish people remain reluctant to invest.
Can people already invest in Ireland?
Yes. Irish residents can already invest through regulated financial providers, often starting with relatively modest monthly contributions.
Depending on their circumstances, investors can access managed funds, diversified multi-asset portfolios, shares, bonds and a range of other investment solutions.
In my experience, the three main barriers are:
Complexity
Taxation
Confidence
Introducing another account without addressing these issues risks adding another layer to a system that many people already find difficult to understand.
How are investments taxed in Ireland?
Investment taxation in Ireland depends on the product or asset involved.
Many investment funds are subject to a tax rate of 38% for individuals. This rate was reduced from 41% from 1 January 2026. Certain investments are also subject to the eight-year deemed disposal rule, while a 1% Government levy applies to contributions made to many life assurance investment policies.
Under deemed disposal, tax can become payable on investment gains after eight years, even if the investor has not sold the investment or withdrawn any money.
Other investments may fall under Capital Gains Tax rules, with different rates, exemptions and reporting requirements.
With so many different rules, it is hardly surprising that many people leave their money on deposit because investing appears unnecessarily complicated.
What would encourage more Irish people to invest?
I believe four changes would make a meaningful difference:
Review or remove the eight-year deemed disposal rule.
Simplify and standardise investment taxation.
Continue improving practical financial education.
Help more people access personalised, regulated financial advice.
A well-designed Savings and Investment Account could form part of the solution. However, it should not be used as a substitute for reforming the wider system.
Why does regulated financial advice matter?
Financial education on social media can play a positive role. It can introduce people to important financial concepts and encourage them to take a greater interest in their future.
However, financial education is not the same as regulated financial advice.
A regulated financial adviser must consider a client’s personal circumstances, objectives, financial position, investment timeframe, attitude to risk and capacity for loss before making a recommendation.
Regulated firms must also meet strict professional and compliance standards, carry professional indemnity insurance and remain accountable for the advice they provide.
I was invited to participate in one of the recent discussions concerning these proposals but chose not to attend.
My concern was not the subject. This is an important discussion. My concern was the balance of representation.
When the Government is considering policies that will influence how Irish families save and invest, I believe those discussions must include professionals who advise clients every day, operate within the Central Bank of Ireland’s regulatory framework and are accountable for their recommendations.
Does Ireland need another investment product?
Most people do not need another investment product.
They need clarity about their options. They need confidence in the decisions they are making. Most importantly, they need an investment and taxation system that encourages long-term investing instead of making it unnecessarily complicated.
The proposed Savings and Investment Account could be a positive development if it is simple, accessible, competitively available and supported by meaningful tax reform.
Otherwise, we risk treating the symptom while ignoring the real problem.
What would help more Irish families invest: another investment product, or meaningful tax reform and a simpler system?
Niall O’Connor CFP® is the founder of Financial Planning Matters and has more than 20 years of experience advising individuals, families and business owners across Ireland. To discuss your investment and financial planning options, visit FPMS.ie.
Book a consultation with a Certified Financial Planner, or email us at advice@fpms.ie.