They are not so great if you are single and die within a few years of a retirement. In that case your pension dies with you regardless of how much or for how long your contributed (apart from your lump sum which you will have claimed on your retirement date)Public service pensions are great
Not sure where you got that figure from or what exactly you are comparing? As the first poster stated you may be comparing "apples with oranges" as there is huge variance in different types of public sector schemes for different categories of workers.I note from private pension calculators I'd have to pay about €1200 a month or so to a private pension for an equivalent benefit?
That is the same with any annuity public or private.They are not so great if you are single and die within a few years of a retirement. In that case your pension dies with you regardless of how much or for how long your contributed (apart from your lump sum which you will have claimed on your retirement date)
I genuinely didn't know that. So if a single private sector worker amasses a pension fund of €500,000 and dies 2 years post retirement what happens the fund?That is the same with any annuity public or private.
If there is no living spouse or child AFAIK it's taxed as income of the deceased in the year of death and then taxed under the CAT regime for the recipient.So if a single private sector worker amasses a pension fund of €500,000 and dies 2 years post retirement what happens the fund?
Did they use the funds to purchase an annuity - if so, then the funds are gone. Some annuity contracts may have a minimum payment period of 1 year or 2 yearsI genuinely didn't know that. So if a single private sector worker amasses a pension fund of €500,000 and dies 2 years post retirement what happens the fund?
The people who die too young pay for the people who live too long. That has always been the way for annuities. People have always thought it was pure profit for the life company. It's not, it pays for those who outlive the actuarial life expectancy.I genuinely didn't know that. So if a single private sector worker amasses a pension fund of €500,000 and dies 2 years post retirement what happens the fund?
That's an ARF. We are talking about annuities.If there is no living spouse or child AFAIK it's taxed as income of the deceased in the year of death and then taxed under the CAT regime for the recipient.
Guidance is here.
The post said a "fund".That's an ARF. We are talking about annuities.
The figure of approx €1200 gross per month in contributions to a private fund in order to generate a pension of €29000 including state pension comes from the calculator on The Pension Authority website.Not sure where you got that figure from or what exactly you are comparing? As the first poster stated you may be comparing "apples with oranges" as there is huge variance in different types of public sector schemes for different categories of workers.
State pension is €13k so the private part is €16k.The figure of approx €1200 gross per month in contributions to a private fund in order to generate a pension of €29000 including state pension comes from the calculator on The Pension Authority website.
Yes, luckily the global economy did great from 2007-2009 and a non-PS pensions soared accordingly…You're also fully tethered to the Irish economic performance with a PS pension. There was a cut to these pensions in 2009 for a few years for example due to the economic crisis at the time.
Per the Pension Authority, that's assuming one begins to contribute to a private pension at age 30 for a retirement at aged 66 and also assumes an nvestment return of 3.5% per year after expenses until 10 years before your retirement date.State pension is €13k so the private part is €16k.
Does the pensions authority say that for a whole career you need to contribute €1200 gross per month (€14,400 a year) for 40 years to generate a retirement income of €16k? That's nearly €600k with zero return which is far in excess of what would be needed to generate a €16k per month pension.
What is assumed will happen in the 10 years pre retirement?Per the Pension Authority, that's assuming one begins to contribute to a private pension at age 30 for a retirement at aged 66 and also assumes an nvestment return of 3.5% per year after expenses until 10 years before your retirement date.
Presumably a shift into cash or very low risk products?What is assumed will happen in the 10 years pre retirement?
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