That's no longer good enough though. The whole pension proposition has been dependent on favourable tax treatment - without tax breaks on contributions, gross roll-up and the tax-free lump sum on exit, no-one would invest in a pension product - why would they? - money locked away for a long time with annual charges being deducted by companies that have not really covered themselves in glory in the past with high charges etc. (although I do accept that this is hugely improved).{safe for now} no matter what you do has risk,pension is probably as good as it gets.
For now pensions are a good bet.
It's not that they are on DB pensions - they are unfunded public sector DB pensions. I have a private sector deferred DB pension and the trustees felt the scheme was not in a financial position to absorb the cost of the levy so all benefits will be permanently reduced in retirement by c. 2.5% - so I'll still be paying for this levy in 50 years time (hopefully I'll be alive...)The best part of this tax from the point of view of those that passed it is that they're all on DB pensions, and so it doesn't impact them. The pension grab has reduced my pot by at least 5%, but the TDs didn't take a similar hit.
I read somewhere that the State pension equates to less than the minimum wage and there is little prospect of increase, given our country simply can't afford it.
An increase to the OAP was announced in the most recent budget.....
An increase to the OAP was announced in the most recent budget.
I agree with you that our country simply can't afford this in the long term but in the short term there's an election to be won!
It seems than the posters on this thread thinks that the Contributory OAP is charity which is funded by the over stretched hard working young tax payers which I don't believe to be the case.
Then please explain how it's funded - must be the magic money tree?
I think the clue is in "Contributory"
Yes, but they are the demographic which is least at risk of poverty and have amongst the highest levels of disposable income. It would be foolish for those currently 20 or so years away from retirement to expect to be in the same position when they retire.
How many more reports are needed before Irish politicians get off their collective well fattened ani and do something about this? ...
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