stanbowles
Registered User
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With the latest increase of tax on gains upon exit (from 36 to 41%), long-term saving via tracker investments in broad equity funds is becoming increasingly hard to justify.
My understanding: the government deducts 1% levy at source of all monthly contributions. The fund manager (in my case Irish Life who took over a former Quinn Life fund) takes minimum 1% of the total fund each year in fees (?). Finally, there is no indexation on which to calculate real gains, ie. you pay 41% on any nominal gains. Even in a low inflation environment this is a substantial extra loss and one that cumulates over time. There is a strong likelihood of paying capital taxes at 41% on real losses!
Putting money on deposit is not much better.
Is there any point in saving?
My understanding: the government deducts 1% levy at source of all monthly contributions. The fund manager (in my case Irish Life who took over a former Quinn Life fund) takes minimum 1% of the total fund each year in fees (?). Finally, there is no indexation on which to calculate real gains, ie. you pay 41% on any nominal gains. Even in a low inflation environment this is a substantial extra loss and one that cumulates over time. There is a strong likelihood of paying capital taxes at 41% on real losses!
Putting money on deposit is not much better.
Is there any point in saving?
