thedarkone
Registered User
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- 28
I see Towers Watson have published some commentary in respect of the optimal size of future pension contributions in the event of future cuts. This was alluded to in Business Pages in Sunday Times 2 weeks ago, so have been watching out.
Full link is below but best summarised with the following extract
"In 2012 [assuming NRP proposals are implemented] there would be no net tax benefit for employee pension contributions when taxable retirement income exceeds €400pw"
Link is towerswatson.com/ireland/press/5947 (sorry, can't post URL)
Presumably this is on the basis that contributions will be part taxed on the way in (PRSI + difference between 41% and 30%), taxed while in there (0.6% levy) and then taxed on the way out under income tax code.
Interested in seeing if anyone here had a take on this, whether this makes mathematical sense, and what might any general recommendations be.
On the latter, it seems to me that if TW analysis is true, means looking at current pension pot, level of future contribution required (if any) to make income = €400 pw, and any post tax surplus one should invest on own account (and not treat as disposable income!!)
Thanks
Full link is below but best summarised with the following extract
"In 2012 [assuming NRP proposals are implemented] there would be no net tax benefit for employee pension contributions when taxable retirement income exceeds €400pw"
Link is towerswatson.com/ireland/press/5947 (sorry, can't post URL)
Presumably this is on the basis that contributions will be part taxed on the way in (PRSI + difference between 41% and 30%), taxed while in there (0.6% levy) and then taxed on the way out under income tax code.
Interested in seeing if anyone here had a take on this, whether this makes mathematical sense, and what might any general recommendations be.
On the latter, it seems to me that if TW analysis is true, means looking at current pension pot, level of future contribution required (if any) to make income = €400 pw, and any post tax surplus one should invest on own account (and not treat as disposable income!!)
Thanks