1% Pension Levy

[Sumatra]

For the life of me I cannot see the logic of a levy (tax) of 1% on people saving for their retirement. We have a pending pensions time bomb yet such a tax is deemed appropriate by those who govern us?

A few questions:

1. How will the levy be applied?
2. When are the IIF talks happening?

Thanks,

Sumatra

 

[Sumatra]

So no one knows?


Each government only thinks of their own term in office. The last ones got out whilst the going was good this one doesn't care if by their actions they stifle pensions growth because thery take the short term view and know only too well the pensions 'time bomb' will be another governments problem.

A few years ago we were told we'd need to introduce compulsory pensions here and pensions take up was finally increasing with many working hard on education and lower cost products to achieve it. That's what a report we the tax payers paid for told us we needed. So lower charging pensions are what the consumer wanted and got but have now created an opportunity for the government to increase tax income?

I can't understand the real benefit of this levy when you take into account the numbers who will be put off taking out a pension, reducing what they are paying or who will simply give up on their retirement provision. If no one notices sure he might as well have made it a 2% charge.

 

[Brendan Burgess]

Hi Sumatra

It is an odd tax ok. I believe that it will also apply to people who buy a pensions annuity with their retirment fund, so that is another hit.

But it's small compared to what is planned for the tax-free lump sum. I think that the Commission on Taxation is planning to tax all sums in excess of €200k.

They will have to bring in compulsory pensions because no one is going to do it voluntarily anymore.

Brendan

 

[Sumatra]

Wouldn't those who have just lost a large proportion of their fund in equities just love such a double whammy? We have really had it so soft the past few years and in reality very little to show for it. The only thing we can do is put blinkers on the horse so he can see just in front of him but not too far least he gets scared.