Apologies, my fat finger is to blame. You are correct, the rate for a male at age 65 is c3.5%.Is there an Irish company currently offering 4.5% for a relatively healthy person?
The Irish life calculator annuity calculator for a single male 65 is showing 3.6%. (A 65 year old pensioner gets their money back by the age of 92.)
If you'd like inflation linked, and a second person, then you're already today looking at under 2% annuities.
I'd be happy with restricting fund choice to safe or ideally guaranteed funds - over forcing people into annuities at rates less than 5%.
Put it this way, forget about pensions, if you'd 100k in cash at 65 would you give it someone who'll dribble it back to you at 3.6% - and hope you live past 92 and still be in a position to care about your annuity?
Back when annuities were 7-9% you did have people opting to convert savings into annuities. Outside the captive pension market, no one now is buying annuities.
That's dreadful carry on. People are sensible all their lives and pay into a pension pot believing they will get a 25% tax free lump sum that they may be counting on to pay down mortgage/fund a property purchase in Spain and you get to doing this sensible thing for 40 years and 2 years before you retire you're told it's no longer possible.Yeah but needs must, I have no doubt to believe that at some stage the 25% tax free element will go. I read there's already rumblings if it in the UK, we normally follow them..
That's one of the main reasons I don't like pensions. Because governements can, and do change the rules.
Which is why some of us remember when a few years back Michael Noonon raided Irish pensions. Made me think that there was no way I'd go for an AVC and that the best bet was to only contribute the amount that got the tax benefit and that got the employer contribution.Governments change the rules about all sorts of investments, all the time.
Uncertainty is part of life.
Which is why some of us remember when a few years back Michael Noonon raided Irish pensions. Made me think that there was no way I'd go for an AVC and that the best bet was to only contribute the amount that got the tax benefit and that got the employer contribution.
You shouldn't have governement uncertainty into the mix. Not on something as important as pensions.
I purchased in early ninties for around IEP 40K. Now worth 220/250 Euro. (not Dublin). Was worth a lot more during the madness of the Celtic Tiger when I should have sold ! But I did sell one to a builder who has now gone bust. I don't see the capital value going up and down as I have seen as being relevant to the question as all that matters if that your rental income (or you) can pay the mortgage.That's not plausible.
The ptsb/ESRI index showed growth of 240% 1996-2005, and the CSO index which started in 2005 shows prices more or less at the same level in 2019 as 2005. The biggest growth according to that index 1996-2005 was in Dublin, by 298% or about a factor of four, but no increase since then according to the CSO.
Unless you made serious renovations, there isn't a house that increased at double the rate of the market over the period.
I purchased in early ninties for around IEP 40K. Now worth 220/250 Euro. (not Dublin).
@LS400 made a claim of 700% growth 1995 to date
You are claiming max 400% growth and over a longer period.
You're not contradicting me, if indeed you were trying to.
I was not at all trying to contradict you. I was pointing out my experience. And if I'd done the same message on here around 2005 the growth would have been phenomenal. I also saw phenomenal price reductions when the Tiger bust. That’s why timing your exit is all important. Mostly that you exit at a time of your choosing and not in a recession.@LS400 made a claim of 700% growth 1995 to date
You are claiming max 400% growth and over a longer period.
You're not contradicting me, if indeed you were trying to.
The Irish life calculator annuity calculator for a single male 65 is showing 3.6%. (A 65 year old pensioner gets their money back by the age of 92.)
According to the CSO only 13% of men aged 65 (in 2011) will make it to 92. So you could argue that 87% men would lose by getting an annuity or that its a measure of what people are willing to pay to remove risk.
CSO
Even if the (now capped) 25% tax-free lump sum was abolished in the morning, pension vehicles would still be the most tax-efficient way of saving for retirement.
@Sarenco I see a clear benefit of putting money into a pension where you get tax relief at the high level (currently 40%) and will only pay the lower level tax (currently 20%) when you take it out or if your employer matches your pension contribution.
I think we're forgetting how tax efficient it is to be > 65 in this Country.
I think we're forgetting how tax efficient it is to be > 65 in this Country.
Not forgetting the non-means tested benefits that kick in at 70.
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