Is my private pension taxed?

[mloc]

I have a defined contribution pension with irish life.
I pay into it every month through my payroll and my company also pays a contribution.
I estimate it will have a value of €600,000 when I retire.Will I have to pay tax on this when I start drawing it down in retirement or is this tax free?

 

[Gordon Gekko]

You'll effectively have two choices:

1) Take 25% as a tax-free lump sum (€150k) with the balance going into an ARF and AMRF (€63,500). Withdrawals from the ARF are subject to income tax at your marginal rate, USC, and PRSI (only until age 66). Once you're 61, you're forced to take 4% a year from the ARF. Once you hit 71, that becomes 5%. You can take 4% a year from the AMRF, and once you hit 75, it merges with the ARF.

2) Take 1.5 times your final salary as a tax-free lump sum and purchase an annuity from an insurance company with the balance. The annuity income will be subject to income tax at your marginal rate, USC, and PRSI (only until age 66).