met a guy recently who reckoned if the government scrapped tax relief on pension contributions and doubled the OAP to over €400/week that this would go a long way towards solving the penions problem.
They would save billions by withdrawing tax relief and have enough left over to double the OAP and the misery caused to people as a result pension funds being wiped out as witnessed over the last number of years would be put to bed.
Not sure if his numbers tally but the notion gave me pause for thought nonetheless.
Thougths anybody??
Hi,
Thanks for your reply.
I'm playing devils advocate here but is it not the case that the doubling of the OAP would simply mean that the exact same money the 30 to 50, & taxpayers either side of that age bracket, people you mention give back to pension contributors in tax relief each year as it stands would go elsewhere, i.e. to the doubling of the OAP???
And if people wish so save extra for their pension they can but the won't get any relief.
Given this scenario most pensioners, who as you pointed out already have free medical cards as well as other free benefits, would be more than content with their lot I would say.
And the 30 to 50 year olds could look forward to a retirement that would be secure and not worry about the fund performance of their pension which has been awful in the last 10 years in particular if you saw the recent prime time programme I think it was(yet fees and management charges still apply each year).
I know its not perfect but has the current system served us well?
Again I'm playing devils advocate here but the more I think about it the less bothered I am about withdrawing tax relief for peoples and companys pension contributions and the more I like the idea of using this same fund(3/4 billion I belief pension tax relief costs the state each year) to provide a more comfortable and secure OAP when I'm in my late sixties - many years from now!
thoughts?
They would save billions by withdrawing tax relief and have enough left over to double the OAP
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