Brendan Burgess
Founder
- Messages
- 52,020
will end this year and not apply in 2016
Pension fund levy has done its job
- Thread starter Brendan Burgess
- Start date
- Status
Gerry Canning
Registered User
- Messages
- 2,504
Something like 45% of people have no provision other than State Pension.
To have even contemplated such a blunt tax was a serious case of dumb sneakyism.
Having once (touched) the certainty that funds would not be raided ,how are people going to be convinced that a pension fund won,t be raided at governments whim in the future?
How can we convince that 55% to self provide.
To have even contemplated such a blunt tax was a serious case of dumb sneakyism.
Having once (touched) the certainty that funds would not be raided ,how are people going to be convinced that a pension fund won,t be raided at governments whim in the future?
How can we convince that 55% to self provide.
Gerry Canning
Registered User
- Messages
- 2,504
Danmo,
Public sector don,t have a fund to rob from.
From memory they increased % public servants pay towards pension,so that hit is limited once levy/hit now finishes , but on Private, once money is stolen it stays gone.
Both hits are not good practice.
If your question is on the 55% who have no extra provision,I assume that means 55% of all workers be they private or public have zero extra provision.
Again that is not good !
Public sector don,t have a fund to rob from.
From memory they increased % public servants pay towards pension,so that hit is limited once levy/hit now finishes , but on Private, once money is stolen it stays gone.
Both hits are not good practice.
If your question is on the 55% who have no extra provision,I assume that means 55% of all workers be they private or public have zero extra provision.
Again that is not good !
Gerry Canning
Registered User
- Messages
- 2,504
Wasn,t 100% sure of your question , hence longer answer, sorry.
Assume you are public service , your union rep/personnel dept should be able to give you clarity.
Assume you are public service , your union rep/personnel dept should be able to give you clarity.
For clarity, there is no change to the Public Sector Pension Related Deduction(PRD) AKA the 'Pension Levy' as it refers to public sector.
The mooted reduction by the Government in the public sector levy is currently being voted on by the various Unions.
As such it was never going going to be mentioned today.
Offaly Exile
Registered User
- Messages
- 10
Danmo, don't forget that on 1st January 2016, the threshold for payment of the Pension Related Deduction (PRD), or ‘Pension Levy’, will increase from €15,000 to €24,750. This will reduce the PRD for annualised salaries by €600. On 1st September 2016, the threshold will increase from €24,750 to €28,750. This will reduce the PRD for annualised salaries by a further €400. In the course of 2016, as a result of the above, there will be a reduction of €1,000 in PRD for most public sector workers.
What do you mean by the public pension levy is a payment towards pension?
I have paid in to a personal pension since 1991 and to say I was furious that this government stole some of it is an understatement. My pension fund like so many lost most of it and just when it looked to be recovering I get my annual statement which show what the fund was and after the year what It is now,miserable growth. Finally at the bottom of the page it states this is the amount being taken by the minister. I have decided not to contribute no more to this fund and do my own personal investing.
It's a contribution by Public Sector employees towards the cost of providing their pensions. They now fund a larger proportion of the cost of their own pensions that they previously did. This proportion will be reduced in the coming years as noted above. No State employee comes anywhere near to funding their own pensions.
Gerry Canning
Registered User
- Messages
- 2,504
john luc.
Our (government) has now stopped stealing from your pension fund.
On what else will you get such good tax incentives?
On what else have they not hit?
Methinks pensions are safe bets(for now?)
Our (government) has now stopped stealing from your pension fund.
On what else will you get such good tax incentives?
On what else have they not hit?
Methinks pensions are safe bets(for now?)
The tax incentives are often merely tax deferrals, particularly for anyone who is expecting to be a high earner in retirement. And it was that mindset that allowed the government to justify the asset-grab - well, sure you've got loads of tax relief (free money, free money!) so we'll just swipe a bit back thanks very much.
Unfortunately 'safe for now' is not a hugely comforting thought for an investment that will stretch 20/30/40 years into the future.
Gerry Canning
Registered User
- Messages
- 2,504
Orka,
Most retirees will not be high earners in retirement.
Sadly most workers are making a poor shape of future proofing income !
Your comment {we will just swipe back a bit} shows the huge damage wrought by Government .
{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.
Most retirees will not be high earners in retirement.
Sadly most workers are making a poor shape of future proofing income !
Your comment {we will just swipe back a bit} shows the huge damage wrought by Government .
{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.
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.
- Status