Yes, there are circumstances where it makes sense. In retirement your wife has her own tax credits / band. There's an amount over the state pension she can earn completely tax free, so it makes sense to use a pension vehicle to utilise that as you've gross rollup.
Above that, it might still make sense in certain circumstances.
There was a recent thread, although not clear it talks about some scenarios.
Making AVC'S at low rate relief or no relief
Nearing retirement couple of years roughly to go. Currently 280k in DC scheme run by New Ireland. At retirement ARF. Fair amount of cash on the side. Would it be wise to put say 200k or more into the pension over the next couple of years taken in to account small amount of the 200k will get...www.askaboutmoney.com
Just remember, there's always a risk that tax rules could change.
My partner is essentially self employed with an income which isn't very significant.
Do you think you will ever be married and jointly assessable?
In retirement, both spouses have their own tax bands once the tax free limit is exceeded.You don't provide specifics but does a high joint income essentially mean at drawdown that your spouse's pension income will be taxed at the higher rate?
In retirement, both spouses have their own tax bands once the tax free limit is exceeded.
This is actually a piece I've started to look at myself as I'm looking at a similar scenario.guess a pension fund with €400k in it at retirement could be quite efficient; €100k paid out tax-free with €300k left in the ARF/AMRF.
Yes, but EmmDee’s spouse probably only has €25k of headroom if they’re sharing Standard Rate Cut Off Point and the State Pension is likely to use up a little over half that.
I guess a pension fund with €400k in it at retirement could be quite efficient; €100k paid out tax-free with €300k left in the ARF/AMRF. 4% of that per year would be €12k plus the State Pension of €13k(?) would give €25k of income.
But it depends on other assets and income streams, e.g. rents.
Will also need to look at state pension - and where they stand.
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