Ask any public/civil service employees. Literally it was robbery.
Ask any public/civil service employees. Literally it was robbery.Are you sure about that?
Any links?
Well there you go then and so far nobody has given me any figures to say I'm wrong. Someone on 200K at age 55 putting in the max from 55 to 65. (I've no idea, but it's an idea all the same).
Also as far as I recall, and I've not looked at pensions in a while, (it will come up for us this year, with a small pot of 50K) but I think that you can be screwed if the pot is valued low when you have to draw it down and take an annuity. And you're too old then to make it up to the level you want to comfortably retire at.
Yes, there was one levy, charged at three different rates over a period of years. There were never two levies as was claimed as far I know.
The levy on pension funds was provided for in section 125B of the Stamp Duties Consolidation Act 1999 (as inserted by section 4 of "the 2011 Finance (No. 2) Act"). For the years 2011, 2012 and 2013, the rate was 0.60% of the pension scheme assets. For the year 2014, the rate was 0.75% of the assets and for the year 2015, the final year of the levy, the rate was 0.15%.
Would the 18 year old not be advised to wait until he's 55 to start a pension. At that age there is a lot of tax benefits which increase as you age and that's the time to then put in the money.
So you think that people should start their pensions late but then they're screwed if they do?I think that you can be screwed if the pot is valued low when you have to draw it down and take an annuity. And you're too old then to make it up to the level you want to comfortably retire at.
Or you could buy a property that will give you 40K. And you keep your capital.I wrote an article a couple of weeks ago on leaving your pension funding too late. If you want to fund a €40,000 income and start funding 40 years out, it will cost you €357 a month. That is a total of €171,360. If you start 10 years from retirement, it will cost you €3,575 a month. That is a total of €429,000.
Pensions are expensive - don't leave it too late - Bluewater Financial Planning
Everyone knows that the earlier you start your pension, the better off you will be in the end. Afterall, some of your money will be invested for 40 years. I have come across a number of cases recently where people are nearing retirement and are drastically trying to play catch up. These are...www.bluewaterfp.ie
Now, if we have the scenario where these person doesn't save at all over the decades that they are working and enjoys living on what they earn, it is highly unlikely that they will suddenly start saving €3,575 a month from age 55.
Steven
www.bluewaterfp.ie
I wrote an article a couple of weeks ago on leaving your pension funding too late. If you want to fund a €40,000 income and start funding 40 years out, it will cost you €357 a month. That is a total of €171,360. If you start 10 years from retirement, it will cost you €3,575 a month. That is a total of €429,000.
To compare like with like here that would mean buying a €172K property yielding €40k p.a. in rent (a 23% yield)!Or you could buy a property that will give you 40K. And you keep your capital.
I'm constantly amazed on here that differing views are so easily dismissed. Especially the pension v property bias.I'm just astonished that someone can rack up nearly 15k posts here and believe that an 18 year-old should wait until they're around 10 years from retirement before starting a pension. Incredible.
I was staggered by your claim that a person should wait until they're 55 before investing in a pension. I actually thought it the worst suggestion I ever saw on AAM.I'm constantly amazed on here that differing views are so easily dismissed. Especially the pension v property bias.
There was a time when there was no PRSI over the age of I think 25. After a certain level of income. My husband hit that ceiling when we moved abroad and the experts in his top company HR department and the top experts they hired in to help with the cost of living difference both missed that.No PRSI from age 66.
What if the person instead invested the money in a business? Or invested it in property? My husband 'invested' in an Irish Life pension at some stage, as far as I could figure out it was all about commission and lost value from the get go until he got his money out. His company pension on the other hand was defined contribution and run well, so that seemed a sensible thing, plus it was compulsory. In addition the employer was paying into it so it was a no brainer.I was staggered by your claim that a person should wait until they're 55 before investing in a pension. I actually thought it the worst suggestion I ever saw on AAM.
Most businesses fail within a few years of startup.What if the person instead invested the money in a business?
How feasible is it to invest in property over a period of 20-25 years in the same way as people invest in pensions, by committing variable sums periodically whenever they can afford it and holding back whenever they can't?Or invested it in property?
My husband 'invested' in an Irish Life pension at some stage, as far as I could figure out it was all about commission and lost value from the get go until he got his money out.
Where did I ever say that. And I'm well aware of taxes on rental income.You need a more open mindset Gordon.
You're missing out on the opportunity of lumping all your capital into a single asset class, and dealing with the stress of being a landlord. Cause there's never been government interference in the rental market that affects your profit or capital....
Most successful business people put everything into it and only get to pensions later.Most businesses fail within a few years of startup.
How feasible is it to invest in property over a period of 20-25 years in the same way as people invest in pensions, by committing variable sums periodically whenever they can afford it and holding back whenever they can't?
Did he do his homework before investing with Irish Life? I set up my pension with one of the most prominent pension advisors on AAM and my experience has been the precise opposite to his.
Not really. Any business person who puts all their eggs into a single basket is foolish.Most successful business people put everything into it and only get to pensions later.
AAM has been here since around the turn of the millennium. If your doubts about pensions are based on experiences in the 1990s, maybe you should say that.There was no AAM back in the past. There was and remain plenty of slick sales men. You took good advice, using a good advisor on here which is an excellent thing to do. Because you also have some financial knowledge. But this doesn't apply to everybody. I think it's fair to say that the posters on here are well paid and know how to get good advice and how to invest wisely. That creates a bias in thinking.
It's easy, for example, to say, everybody was stupid to get endowment mortgages. But I don't recall the experts at the time warning how bad they were.
Did you account for the pension levy in that calculation, the only way to account for it accurately is to deduct it based on the fall in pension funds in the years in question 2011 to 2015. Therefore you would need to calculate year on year based on the actual average pension value in that year. The pension levy was deducted off an already depressed pension fund value ,therefore its effect was greater than in a normal year.wrote an article a couple of weeks ago on leaving your pension funding too late. If you want to fund a €40,000 income and start funding 40 years out, it will cost you €357 a month. That is a total of €171,360. If you start 10 years from retirement, it will cost you €3,575 a month. That is a total of €429,000.
Sounds to me like they were both defined contribution.My husband 'invested' in an Irish Life pension at some stage, as far as I could figure out it was all about commission and lost value from the get go until he got his money out. His company pension on the other hand was defined contribution
Nothing preceding your post was off topic in my opinion.To get back on topic.
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