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I suppose the smart money would be on DIRT + 2%, consistent with the very original formula before deemed disposal which was Standard Rate + 3%. I don't think it will be phased in, or at least not intimated that it will be as such an announcement would affect behaviour in a way that was not...

Have to think about that. The way DIRT works is that if there is any guaranteed return at all it is subject to annual DIRT on the bit that is guaranteed. So following this approach the product linked to a cash fund would have to have no guarantees other than possibly that its price won't fall...

That is a net payment of €29,160. If you stay invested then your fund will grow to 30k x 30/27.95 = €32,200 and after tax you will receive €29,248 so that the tax cost of encashing early would be €88. That is true. A further complication is that I expect that the 41% emergency exit tax will be...

Wow!! So she concedes that the 25% (per ESRI) of eligible AE contributors who will be paying 40% tax would only get half that relief under AE but points out that they mightn't have the employer top-up. What a bonanza for the pensions industry? "Employers did you know that as an alternative to...

We have had two days of Dail debate on the AE Bill. The only reference to Colm's proposal came from Catherine Connolly. Then we look at England, but we are not told about the opt-out rates. It would be great if we had the opt-out rates somewhere. I come to a different structural basis for...

If there are no exit charges I can't see any downside in cashing out and reinvesting with the 1% broker.

Boss a Google search gives the following list of uses and that doesn't even count speculation or an even better use being a "great topic for online discussion" Earn Interest on Bitcoin Ticket and Hotels using Bitcoin Cross Border Remittance Bitcoin is the largest financial service in the world...

The question was asked by a layman (albeit an aristocrat);) I agree that technically is not the same as experienced. I myself have been just informed of my 2023/2024 increase. It is 3.4% and as with previous years it is based on the CPI figure published in February. I don't think I was ever...

Thought experiment. CPI for first 6 months of 2022 is 100. CPI jumps to 1,000 in July 2022 and stays there ever since. What was the actual inflation experienced in 2023?

You are of course right that historically fully equity investment throughout life would have worked out the better. The report above looks forward and projects 5% growth pre retirement and 2% post retirement with 2% inflation to be deducted. That gives them that your PS deal has a 25% employer...

You're still not allowing for inflation. Pension pot €353,121 in today's money. Residual pension in today's money €10,244. PS figures do not change as they are inflation adjusted. And do you really believe inflation will be held at 2% for 40 years?

Yes, of course, I decided not to get into the obvious difference between the guaranteed nature of the PS scheme with the highly volatile/risky strategy of pure equity investment, which seems to be the assumption behind the contrarian example. 4% is a sort of accepted rule of thumb for drawdown...

@locknbarrel the power of compound interest! 7% growth would not be considered as conservative. The official report comparing the PS with the Private Sector used an assumption of 4.5% p.a. growth (70% equity, 30% bonds). Using this figure I get the residual 4% pension to be €14,590. But you...

@Itchy Hmm! That muddies the picture. That report seemed to assume pension age would increase to 68, which only affects Single Scheme but certainly not enough to justify the 3x figure contained in the official circular of 2016. So it would seem that "gold plated" should be confined to the...

Thanks @LDFerguson. Just to be clear. The letter says only a few affected employers need actually pay the 3 x contribution but it is still the economic cost for all affected public servants. I wasn't a mile off, though it seems that the voluntary terms are a bit harsh. (subsequently...

I looked at the latest incarnation - the career average pension scheme. It is integrated with the OAP but for simplicity I looked at the cost of the benefits above the CSP threshold. The benefits for one year's contribution of 6.5% are 3.75% lump sum plus 1.25% pension. They also have a...

An interesting angle @ashambles They don't actually project that peoples "real" incomes will increase. They only assume that they grow with inflation. Historically, average incomes have increased by more than price inflation due to increased productivity. They assume in the projections that I...

I attach Executive Summary and Conclusions of the independent expert - two pages. Not sure about the increased income tax from future pensions; the Heads suggests that the tax treatment will be very generous, similar to the SSIAs.

Below is what the Bill actually says. So still a lot of clarity needed. I wonder what EY assumed in their calculations. (By the way, the Bill certainly piles a lot of further work for the Minister. He or she will be kept very busy ;)) (6) In making regulations under subsection (5) the...