@Truffade
I see that

@jpd has answered your queries above.

If there is a Truffaude Spouse, then as a couple you would need to be bringing in pensions of over €70,000 per year before you'd even hit the higher 40% tax rate in retirement. Anything below that would be taxed at 20%, less your Tax Credits. You'll also be able to withdraw 25% of your fund as a lump sum, with the first €200,000 being tax free.

If I assume that you are paying tax at 40% now, then you're receiving 40% tax relief on your contributions.

To use your example of the €1 million fund, the first €250,000 would be paid as a lump sum. €200,000 would be tax-free and the remaining €50,000 would be taxed at 20%. So you'd pay tax of €10,000 on your lump sum of €250,000. That's an effective tax rate of 4% on that quarter of your pension fund.

If the remaining 75% of your fund is going to be taxed at 20%, less your Tax Credits, then overall you'd be paying an effective tax rate of less than 15% on your pension fund (plus levies), having received 40% tax relief on contributions.

Regards,

Liam

www.ferga.com