Ah now…must people can only dream of having such a pension. I’m assuming kids are reared and no debts.
Ah now…must people can only dream of having such a pension. I’m assuming kids are reared and no debts.It’s a decent number, but €60k a year gross is hardly living the high life.
It’s worth noting that even under the new regime, because there is no changes to TFLS and amount of lump sum charged at 20%, there really is very little additional ‘tax break’ being provided as all of the incremental pension will likely be taxed at 48% upon drawdown having only received 40% relief on the way in.Much too low to live comfortably off?
i agree with the need for indexing in general but surly the tax breaks for a pension are ther to encourage people to save for a reasonable standard of living for retirement. Does €2m not provide that? What would it be a year?
These things can all be true.Ah now…must people can only dream of having such a pension. I’m assuming kids are reared and no debts.
not loads ?? That is the kind of comment that P Flynn would have made.These things can all be true.
I agree most people can only dream of having that level of pension but the (first world) problem is that it’s not loads either.
It’s worth noting that even under the new regime, because there is no changes to TFLS and amount of lump sum charged at 20%, there really is very little additional ‘tax break’ being provided as all of the incremental pension will likely be taxed at 48% upon drawdown having only received 40% relief on the way in.
The only benefit is the deferral of payment.
I think many people see this as a big bonanza giveaway to multimillionaires. It’s really just a slightly delayed (but bigger) tax bill to those who’ll have a gross income of maybe €80k in retirement? Doesn’t seem excessive to me but it’s cheap political point scoring!
It’s 60 grand. The average salary is north of 40 grand. It’s not ‘loads’ by any stretch of the imagination.not loads ?? That is the kind of comment that P Flynn would have made.
Again, the growth is not tax free. It’s tax deferred. Any growth will go 52% individual, 48% state.Doesn't that deferral enable possible decades of tax free growth? That is pretty valuable.
In my opinion tax free policy should be designed to enable people have a good standard of living in retirement.
I would prefer to see other schemes to encourage people to say save a deposit or have money available earlier in life than more support for large pensions.
No, just too low to have to worry about going over it and getting penal tax on the amount over. It’s a good pension by average standards but it’s hardly living the high life. 2.7million when I’m 65 is 92k pension, but equivalent to 1.7million in todays terms, or 58k pension. So roughly 50% salary, I’d be very happy with that, but I won’t be buying the Porsche.Much too low to live comfortably off?
i agree with the need for indexing in general but surly the tax breaks for a pension are ther to encourage people to save for a reasonable standard of living for retirement. Does €2m not provide that? What would it be a year?
It depends on your expectations for retirement.It’s a decent number, but €60k a year gross is hardly living the high life.
This is it for me, I’ve no intention of working to 65 to have a ‘95k’ or ‘100k’ heavily taxed pension income. I am however very happy to know I don’t have to worry about the SFT limit at all in case circumstances change and I need full salary for longer. I will try to retire between 58-62 at a good point for pension fund and with no mortage. Funnily enough the previous 2 million limit has been a nice target and we’ll still consider it as one for early retirement. Like you say it depends on lifestyle, if you can take lumpsum and have no mortgage already that’s a big difference for early retirement. If you like boats, 5 holidays a year or have plans to fund a home abroad with the lumpsum then it’s a different calculation, and I know people with all 3 of those wants!It depends on your expectations for retirement.
For me, leaving the workplace 2-3 years earlier with 60k vs 80k for example is living the high life. For someone else it could be eating lunch in Rolys before jetting off for a Carribean cruise.
Our perception of wealth has a lot to do with the lifestyle of the few years prior to retirement, if it was low spending/high saving.. 60k will feel great. If it was high spending... It would be difficult, especially given the extra time to fill with expensive things.
Let's not forget the 440k spending money that comes with it too.
No it wouldn’t.An EU Commissioner’s pension, for example, would be around €190k a year.