If 20% maximum tax relief was introduced the effective relief on contributions would have been as low as 8% (20% income tax relief - 8% usc - 4% Prsi).The USC was announced in December 2010 two weeks after the bailout agreement.
The levy on pension assets was announced subsequently, in May 2011 and the prior commitment to introduce standard rating on all contributions was abandoned.
You actually think that’s the maths of it?If 20% maximum tax relief was introduced the effective relief on contributions would have been as low as 8% (20% income tax relief - 8% usc - 4% Prsi).
The maximum taxation of pension drawdowns would be 52% (40% income tax + 8% USC + 4% Prsi) and that would have ended pensions for the Irish population.
No, it was the Income Levy you're thinking of. They promised it would be temporary, and it was. USC is completely unrelated and just happens to have the same rates as the temporary levyThat problem was dealt with when they invented the USC.
Not relieved on contributions and then double charged on drawdowns.
So what though?He raided pensions yearly for 5 years.
It was 0.6% for 2011 to 2013, 0.75% for 2014, 0.15% for 2015, and then it was abolished.
Are you sure about that?There was two separate levies. 0.5% and 0.15%. They happened to overlap for a few years (or was it one year?).
Michael Noonan took 0.6% of my pension fund
the State, during unprecedented times, dipped into my pension
They were raided for a few years,
Or beingYou are improving.
It seems to have left deep scars with you anyway.You are improving.
I mis-remembered the rates, it was:Are you sure about that?
Any links?
You mean (from the link that you posted)?I mis-remembered the rates, it was:
0.6% from 2011 to 2014, and
0.15% from 2014 to 2014.
It was charged on the market value of assets in pension schemes held on 30 June in each year at a rate of 0.6% (2011 to 2013), 0.75% (2014) and 0.15% (2015).
The levy was discontinued from 2016 and currently, private pension holders are not required to pay a pension levy.
Interesting thread ! It shouldn't say Noonan though, it should say Finance Minister.Moderator's note: Moved from another thread
Would the 18 year old not be advised to wait until he's 55 to start a pension. At that age there is a lot of tax benefits which increase as you age and that's the time to then put in the money.
Especially given previous tax raids on pensions (Here's looking at you Michael Noonan).
Well there you go then and so far nobody has given me any figures to say I'm wrong. Someone on 200K at age 55 putting in the max from 55 to 65. (I've no idea, but it's an idea all the same).I'm just astonished that someone can rack up nearly 15k posts here and believe that an 18 year-old should wait until they're around 10 years from retirement before starting a pension. Incredible.
So to summarise what you've said, you basically know nothing about pensions, but advise that nobody should have one until they're 55?Well there you go then and so far nobody has given me any figures to say I'm wrong. Someone on 200K at age 55 putting in the max from 55 to 65. (I've no idea, but it's an idea all the same).
Also as far as I recall, and I've not looked at pensions in a while, (it will come up for us this year, with a small pot of 50K) but I think that you can be screwed if the pot is valued low when you have to draw it down and take an annuity. And you're too old then to make it up to the level you want to comfortably retire at.
If it's a small fund, there are options to take the balance as taxed cash.Well there you go then and so far nobody has given me any figures to say I'm wrong. Someone on 200K at age 55 putting in the max from 55 to 65. (I've no idea, but it's an idea all the same).
Also as far as I recall, and I've not looked at pensions in a while, (it will come up for us this year, with a small pot of 50K) but I think that you can be screwed if the pot is valued low when you have to draw it down and take an annuity. And you're too old then to make it up to the level you want to comfortably retire at.
Boom boom!You were probably enjoying a meal in an expensive restaurant when it was announced.
Are you sure about that?
Any links?
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