Retirement Plan - Average return?


Where does the €3m come from Gordon? €1m of that is going to be taxed twice for going over the Standard Fund Threshold. Surely not a tax efficient method of saving?


Steven
http://www.bluewaterfp.ie (www.bluewaterfp.ie)
 
SBarrett said:
Where does the €3m come from Gordon? €1m of that is going to be taxed twice for going over the Standard Fund Threshold. Surely not a tax efficient method of saving?


Steven
http://www.bluewaterfp.ie (www.bluewaterfp.ie)
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Hi Steven,

My sense is that in 30 years time, the SFT will be higher.

But you are absolutely correct.

Gordon
 
Gordon Gekko said:
Hi Steven,

My sense is that in 30 years time, the SFT will be higher.

But you are absolutely correct.

Gordon
Click to expand...

Could go the other way. The UK is much lower.

Net present value of €3m in 30 years, assuming 2% inflation is €1.65m, well within the limits.


Steven
http://www.bluewaterfp.ie (www.bluewaterfp.ie)
 
Yes, but they have ISAs etc in the UK. And a lower SFT would bring a lot of mid-ranking public servants into Chargeable Excess Tax territory. My money would be on a higher SFT.
 
Yep, a lot a high earners in the UK's public sector face significant tax bills as a result of the reduction of their maximium lifetime allowance to £1million (from £1.25m) last year.

Money invested in ISAs would already have been taxed so it's not really comparable to a (tax deferred) contribution to a pension scheme.

FWIW, I don't expect the SFT to be reduced to the level of the UK's lifetime allowance but I would be very surprised if it was actually increased, at least in real terms.
 
Sarenco said:
Money invested in ISAs would already have been taxed so it's not really comparable to a (tax deferred) contribution to a pension scheme.
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ISAs are very relevant in the context of any comparison between the retirement planning environments in Ireland and the UK.
 
Conan said:
But if you were 62 then your average life expectancy is some 20 years. So I think it is more reasonable to assume you will spend the net €20k
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I view my pension fund as "jam". My wife's pension, our rental income, and my State Pension would be more than enough for us to live well.
 
Gordon Gekko said:
ISAs are very relevant in the context of any comparison between the retirement planning environments in Ireland and the UK.
Click to expand...

Indeed. And the considerably less generous State pension in the UK would also be highly relevant to any such comparison.

But my point was that money invested in ISAs would already have been taxed so it's not really comparable to a tax-deferred retirement saving vehicle.
 
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