"It seems to make no sense at all to consider reducing the tax incentives on pension funding for private pensions as is being suggested by some,” stated Dave Gribben, Managing Director of Financial Engineering, at the opening of the firm’s new offices in Dublin, which was also attended by Finance Minister Brian Cowen.

Mr Gribben's statement came in response to a suggestion by the Economic and Social Research Institute (ESRI) that EUR1.5bn of tax reliefs claimed on pensions could be better used towards Social Welfare pensions, a view which is supported by the Pensions Board.

Mr Gribben continued:

“Like the government we have recognised the importance of financial freedom particularly at retirement age. This is a central part of what we do with our clients. As part of that the National Pensions Policy Initiative (NPPI) has been focused on dealing with the enormous funding problem facing the State and individuals because of the, now well publicised, demographic time bomb."

Aidan McLoughlin, Technical Director of Financial Engineering, further argued that following through on ESRI's recommendation would exacerbate the funding problem by increasing social welfare pensions payments and the subsequent additional funding to maintain the system into the future.

“Surely as part of the current pensions review process we need equity in the system between the public and private sector so that the private sector is given the right incentives to tackle its pensions funding problem,” McLoughlin observed.