I still think ARFs are a good product. A lot of people I have come across taking these out are more for inherintance planning, to pass the fund on tax free on death. Still better than purchasing an annuity and dying a year later.
Not sure how you get the tax payer is paying for them?
Exactly my point.By providing tax subsidies such as
(a) generous tax relief on the contributions, and
(b) no tax on the investment returns on the pension fund.
I don't see why my tax euros should be used to subsidise someone salting away a nest egg that can then be passed on to their children tax free.
By providing tax subsidies such as
(a) generous tax relief on the contributions, and
(b) no tax on the investment returns on the pension fund.
I don't see why my tax euros should be used to subsidise someone salting away a nest egg that can then be passed on to their children tax free.
Well said cerebos.
Actually think ARFs encourage more pension provision too - as they encourage people to make AVCs as they know they have the option to use an ARF with them on retirement, and use the money they have saved in whatever fashion they want to rather than being dictated to as to purchasing an annuity.
So more income/wealth on retirement, less medical cards to provide for over 70s, less subsidies etc etc
That does appear to be what is happening, but I had not set up an annual income. I understand it had to do with the tax situation after the 2007 budget where I had to draw down the money annually. The company just forwarded the money to me this year. Is this correct,Did you set up an annual income from your ARF? Sounds like you were paid 1% of the value of your fund in 2007 & 2% in 2008?
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