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In Europe, retirees drawn on to compensate for low rates

DECRYPTION – The taboo of taxing savers is gradually crumbling. In France, the question is raised in banking circles.

The Bank of Ireland will charge a rate of 0.65% on pension fund deposits.
The Bank of Ireland will charge a rate of 0.65% on pension fund deposits. WavebreakMediaMicro – stock.adobe.com

Stupor in Ireland, where retirees do not seem to be able to enjoy a little respite in this summer obscured by the health and economic crisis. The bad news fell at the end of July: retirement savings deposits at the Bank of Ireland, a private establishment, will be drawn on next September to offset negative rates. Penalized for many months by the low interest rate policy of the European Central Bank (ECB), the country’s largest commercial bank believes that it is “more viable to hold such large funds at no cost».

«Is it fair that average pensions can be cut because of a tariff decision by the banks?»One wonders in the Irish media. In the country of Clover, this decision raises serious concerns: will other banking establishments follow suit? “The prudent, who took the trouble to provide for their retirement find themselves punished», Denounces The Independant

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