Steven Barrett
Registered User
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- 5,331
It is a positive move. Someone on €130,000, retiring at 60 on €65,000 pension and 1.5 lump sum gets hit with a €58,000 tax bill. While they had decent earnings and a good pension, I don't think they would be consider high earners.
Salaries have increased substantially since 2014 and the pension threshold needs to keep up with it. And if you think this is just another benefit for the rich, by keeping it at €2 million, more and more "ordinary workers" will end up with massive tax bills when they retire. As we have seen with the Gardai, the pension cap is costing them in that the most senior Gardai don't want promotions. There is something wrong when you are losing your best people this way. It is an easy fix.
Interestingly, the lump sum payment isn't being increased. This is fine, the threshold was the area that needed to be addressed.
Salaries have increased substantially since 2014 and the pension threshold needs to keep up with it. And if you think this is just another benefit for the rich, by keeping it at €2 million, more and more "ordinary workers" will end up with massive tax bills when they retire. As we have seen with the Gardai, the pension cap is costing them in that the most senior Gardai don't want promotions. There is something wrong when you are losing your best people this way. It is an easy fix.
Interestingly, the lump sum payment isn't being increased. This is fine, the threshold was the area that needed to be addressed.