How much have you got in your pension fund?Just how much more can they take off people?
It could be the lesser of two evils though. Looks like a compromise for not reducing tax relief down to 20% for all, which would have made a lot of people stop contributing all together.
If you have a fund of €100,000, then you'll be paying €50 in tax, not a huge amount in the whole scheme of things
€100,000 @ 0.5% is €500
Presumably the proposed Levy will apply to funded semi-state schemes (such as ESB etc). It seems that unfunded schemes escape the Levy, mainly -but not exclusively- civil servants. It might be argued that working Civil Servants have made a contribution (the increase in their pension contribution - though that is arguable) but the group that seems to escape entirely is retired civil servants and retired politicians whose pensions are not paid by annuity but rather out of the public purse.
That's coming.Why not impose the levy on savings accounts and other investments.
You seem to have a different definition of 'unscathed' to most people. Have you heard of the income levy? Have you heard of the across the board reduction in public sector salaries, affecting staff and pensions by 6%-9%?The following groups remain unscathed:
Public sector pensioners
Old age pensioners
Semis state workers and pensioners
I would be much happier if I were being forced to buy into a fund dedicated to funding Irish business start-ups
The best way to help Irish business start-ups would be to reduce the amount of tax they pay. There should be incentives to start up businesses. At the moment, there are huge disincentives. How about removing these first? Increasing the tax burden for pension holders will just reduce the number of pensions. It is also another reason for leaving Ireland entirely.I do not mind paying more tax out of my pension if that is what is needed. However, I would be much happier if I were being forced to buy into a fund dedicated to funding Irish business start-ups, and I could sell my share on to somebody else. That way the money would hopefully create jobs and would be applied on the basis of commercial criteria, meaning the jobs would be more likely to be sustainable.
How will it work on DB schemes? Easy to impose on a DC scheme because the value of the fund is clear. That's not the case with DB schemes many of which have basically a minus value.
Sunny, not sure what point you are making here. I know old style actuarial valuations might have valued DB assets at something different from their market values but I presume the levy will be on the market value of the assets which is just as tangible and observable as in a DC scheme.The value of a DB scheme isn't simply the assets in the fund as of today though so is this a tax on assets or values?
If you are like many older middle class people nearing retirement, you may have a fund of well over €1 million.
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