Baby boomer
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Correction to #2 investment will grow gross of tax
In the roll out of the Strawman it was stated that AE pensions would be outside the tax net. It was a SSIA type scheme. That was easily exposed as a nonsense.
It was a SSIA type scheme.
why point three when you lose on exit more than you gain on entry?The optimum scheme for a young person who expects their salary to increase is
1) Have a flexible employer who will contribute to a scheme without requiring you to match their contributions.
2) Stay out of auto-enrolment
3) When you are in the 40% tax band, start contributing
Brendan
AE is mainly targeted at those not already members of an Occupational Pension scheme. If your Employer operates a pension scheme already then AE won't affect you.Hi, I have tried looking up answers to the auto-enrollment but cant find it. I'm employed in the private sector. Will I be affected my auto- enrolment? My employer pays up to 10% pension, I earn 80k. With the auto enrollment - does this change?
AE is mainly targeted at those not already members of an Occupational Pension scheme. If your Employer operates a pension scheme already then AE won't affect you.
Hopefully you are correct. AE contribution levels should be considered a floor not a ceiling.I hope that employers won't view AE as an opportunity to save money by replacing an existing Occupational Pension Scheme paying 10% contributions with an AE arrangement paying less.
I think you're right Steven. AE is really for people who meet some or all of the following criteria: low to average wages, part-time, in and out of work over the years, changing type of job a lot, etc. These are the people who don't have private pension coverage at the moment.Wrote about this topic this morning, looking at whether the lower amc will offset the lower tax relief for those paying tax at 40%.
AE is a very bad deal for anyone on €80,000+ as that is the cap on employer contributions to the scheme and there is no scope to make AVC payments into the AE scheme. I am presuming that they can still set up a PRSA AVC plan, which will attract tax relief at 40%, where their contributions into the AE scheme doesn't.
If you can have a PRSA AVC and your contributions to AE are matched with a gov contribution, then presumably the full tax relief is also available to you (on the AVC contributions)?
Correct, I didn't see anything. I find it hard to believe that there will be no facility for AVC's though. It may end up with something through the AE scheme.I don't think there's anything in the AE proposals to allow tax relief on AVCs (including AVC PRSAs) while also a member of the AE scheme.
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