This isn't a big deal, it's not much hassle to open an account online with Degiro for example. At least with what could be 5 figure sums at stake it shouldn't be your primary consideration.without having to open an additional account with a broker
I'm in similar position to original poster. I'm not yet 50 but have been making AVC with my DC pension contributions. I also have DB from previous scheme. I might find myself moving to part time work for more than a decade before drawing down pensions at 65. For an extreme example if I moved to working 1 day and my salary reduced to 20% from age 54 to 65 would my max pension drawdown be based on original salary or reduced salary1) Maximum benefits that are available from the occupational scheme need to be assessed against the best 3 years in the previous 10 years so a reduction in earnings at the end of career may not be an issue.
If I look to take lump sum on early retirement say at 52, do I need to be moving the expected amount to cash allocation at 50 or so? Would plan on Arf for the balance. I’m managing the pension allocations myself as lifestyle approach doesn’t match my time horizon
Personally, I wouldn't adjust your asset allocation in your pension to allow for the fact that you may take a lump sum in the future.If I look to take lump sum on early retirement say at 52, do I need to be moving the expected amount to cash allocation at 50 or so?
You won't get income tax relief whether you put your funds either in an ETF or your pension fund where you've already maxed out contributons.I thought that this 30% was the maximum that I could contribute to the pension in a tax efficient way hence this is why I started looking at the ETFs
I disagree. We don't have the OP's overall financial picture but he is most likely looking at a full state pension and a mortgage paid off so basic shelter and needs are covered. The life expectancy of a 54-year old Irish man is 28 according to the CSO and that is likely to be revised up. Over the course of three decades it's highly unlikely that stocks/bonds will outperform equities.At 54 you should probably keep a meaningful portion of your assets in “safe” investments (cash/government bonds).
You won't get income tax relief whether you put your funds either in an ETF or your pension fund where you've already maxed out contributons.
So your only choice is regarding what tax you'll pay in future. For me, no CGT plus 25% tax-free withdrawal after 60 beats deemed disposable at 41% in any universe.
I don't think you've fully thought this through. Access to capital is the missing something.With an ETF you pay deemed disposal after 7 years, with your pension fund your returns are not subject to CGT and you can withdraw 25% tax free on retirement. I am not sure what the appeal of the ETF is.
Am I missing something?
Thanks I hadn't considered that aspect.Only the first €800k is tax free so on the next €200-300k, they will pay 20%. Averaged on the whole pot, that is 5-5.5% on the lumpsum.
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