A
alicat
Guest
I am heartily sorry if this is a dumb question but if I am saving 20% on my pension deductions at the moment, will I be taxed at 20% on my lump sum on retirement or will I be taxed at the prevailing rate in 2050?
Eh?! What about this (personal pension):To be clear, under current rules you can only take 25% of the pension fund as a Tax Free lump sum on retirement if you are either Self Employed or a 5% plus shareholding Director.
If you are an employee (not 5% Director) then you maximum Tax Free lump sum is 150% of your Final Salary.
and (I'm pretty sure) similar info on the Pensions Board website which suggests that the 25% lump sum is not only for the classes of individual that you mention (but I can't check because their site seems to be dog slow at the moment)?Approved Minimum Retirement Fund
You may take up to 25% of the fund as a lump sum (tax-free). Then you must set aside at least 63,486.90 euro of the fund and place it in an Approved Minimum Retirement Fund (AMRF). This fund may not be drawn down to less than 63,486.90 euro until you reach 75. This obligation to invest in an AMRF will not be imposed if you have a guaranteed pension or income for life from a state pension, annuity or occupational pension of at least 12,697.38 euro per annum (this is called the minimum income requirement).
is surely simply incorrect?To be clear, under current rules you can only take 25% of the pension fund as a Tax Free lump sum on retirement if you are either Self Employed or a 5% plus shareholding Director.