Straw man pension proposals

T

Techhead

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Higher rate taxpayer with private pension. Employer and I contribute.

Can someone clarify the gov proposal to lock folks out of their private pensions until the state retirement age... am I reading that wrong?
 
Techhead said:
Higher rate taxpayer with private pension. Employer and I contribute.

Can someone clarify the gov proposal to lock folks out of their private pensions until the state retirement age... am I reading that wrong?
Click to expand...
can you provide a link please,
 
That's the auto enrollment scheme, it is not the same as an occupational pension scheme, so it does not apply.

And even still, the auto enrollment scheme is at embryonic stage, it will change a lot before (if) it is implemented.


Steven
http://www.bluewaterfp.ie (www.bluewaterfp.ie)
 
I suspect you will be proven to be wrong in this instance,The straw man argument being used by people in the pension Industry about keeping the 40% rate for for high earners is no longer working like it used to in the past,
( I am one of the people who benefited from the 41%/50% income tax break )
(I also benefited from not having to pay employees PRSI on my contributions making the tax break worth over 50% for years to me)

(They dropped the break from over 50% to 40% already I don't think there was much of a drop off when it went to 40%)

If you look at the state pension and you take out one group, (not picking on this group just using it to make a point)
The group I am going to use is this instance is the group paying PRSI class s,

If you look you will see all of the PRSI class S collected in a year only covers 23% of the current pension payed out to this group, There would be high and low income pensioners in this group,

The Straw mans argument is the people paying 40% income tax most of there tax finishes up in the pocket of people who pay tax at 20% or no tax,

but when you look closer you will see most of the extra 20% they pay gets used to fund people in all income brackets ;

There are lots of squeezed people paying tax at 40% who are not in a position to take up the pension tax break as an example people trying to collect enough for a deposit for a house and then when the get a house they are still cannot take advantage of the tax break so one group of high earners paying tax at 40% finish up giving a tax break to the other group of well off high earners

Now look at the Steelman argument up steps Leo

He is going to look after the group who get up early in the morning and go to work,

Once Upon a time in Ireland FF had a Name for looking after this group sad part is FF only had a Name for looking after them (Spent two long in the Galway tent neglected to look after the people who used to vote for them when they were in power.

FF will not be back in power again if Leo looks after the people FF failed to look after and Leo knows this ,

If FG gets the auto enrollment scheme up and running people who used to vote FF will no longer have a reason to vote for FF Leo is going to finish them off,

I suspect pressure groups who had power over FF will feel the cold,

Leo is not for sale when the prize is getting rid of FF for good When Leo is finished
FF will be able to fit all of there TDs, in a phone box,
 
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Retired,

You've gone off on a tangent there. Techhead was asking about access to his private pension. The Auto enrollment paper mentions nothing about access to private pensions. In fact, it is very vague when it comes to the options at retirement.

Reducing tax relief on personal pension contributions may be something that happens in the future, governments are certainly seem very eager to do so (I'm not even sure they realise it will cost them more themselves, especially with the temporary pension levy the public servants pay becoming permanent next year).


Steven
http://www.bluewaterfp.ie (www.bluewaterfp.ie)
 
Yes Steve you are correct I did go off on a tangent , Reason being I have seen several newspaper also go off on a tangent reading between the lines the were a staking horse being used to drum up support for lobby groups,
I understand it will not affect Techhead pension or date of draw down it could affect the % tax break techhead gets on there private pension, but if they auto enroll they sum of the two pensions should work out even better than the tax break they are getting at present this is not being highlighted at present,

By enrolling people on low wages this should mean long term people on low wages will need less support in the future , so less of a call on high income tax payers,

This should have being done a long time ago ,
I Often on this forum use the term The real loony left, They are the people who for short sighted gain will finish up paying a heavy price long term,in fact we are already seeing it when you look at all of the prsi and usc lumped on to the likes of Landlords and others,

one of the reasons for the very good tax break on private funded pensions was to counter act the pressure from vested intrest groups who argued they were needed to offset the public service so called advantage I have seen it used in the past as a reason for tax break @ higher rate


My reading differs from yours seeing the public service are now paying extra for there pension there is less need to give the break at 40%,

Just before some one heads down a rabbit hole I know public servants can and some do have a private pension tax break along with there public service pension,

BY the way what is driving me to respond to this post I see high income tax payers being hammered left right and center because some lobby groups who they think are out for there best Interest have left them on the latch for massive tax on income and un earned income long term,
 
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