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Thats just wrong

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    #92
    CabanSail
    Moderators, Category Moderators, Arts Moderators, Entertainment Moderators Posts: 9,047 CMod ✭✭✭✭CabanSail


    smash wrote: »
    No it wouldn't. They've earned their wealth.


    As long as they have earned the €200k, which is the limit for the tax free lump sum why shouldn't everyone be able to take it?

    Why should the wealthy pay no tax on that whereas those less well off have to pay significant tax on the same money?


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    #93
    smash
    Closed Accounts Posts: 34,809 ✭✭✭✭smash


    Allinall wrote: »
    That's tax on spending, not earnings.

    I did say after your net pay!


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    #94
    esforum
    Closed Accounts Posts: 1,420 ✭✭✭esforum


    Squall Leonhart wrote: »
    I'll counter this by saying, suppose you don't die young? Supposing you haven't paid into a pension, then when you reach 67, or whatever the age is, you're in good health, but the state pension turns out to be woefully inadequate at the time, or non-existant. What then? Live til 95 in poverty?

    An extraordinary amount of people DO make it to retirement age. It's foolhardy to think "I might die young, **** paying into this thing". While it may be true, it's more likely that you'll live to that age.

    yeah but my point wasnt that you shouldnt pay in. and 10 grand for sitting on your arse neveing having worked, aint nothing


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    #95
    [Deleted User]
    Posts: 0 ✭✭✭✭ [Deleted User]


    CabanSail wrote: »
    As long as they have earned the €200k, which is the limit for the tax free lump sum why shouldn't everyone be able to take it?

    Why should the wealthy pay no tax on that whereas those less well off have to pay significant tax on the same money?

    Everyone is entitled to a tax free lump sum, as long as they've work for over 20 years, of 1.5 times their final salary.

    This salary can include non-pensionable earnings and can be averaged out over a number of years.

    There is also an option of taking 25% of your fund value as a lump sum.

    The lump sum is tax free up to €200k, anything over that is taxed at a certain rate. Anything over €500k is taxed again.

    From reading your posts you either don't seem to know the rules around retirements or you're not explaining yourself very well.

    Whomever you are dealing with should take independent financial advice from someone who can explain to them clearly what their options are with frightening them that they are a victim of some government/wealth conspiracy.


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    #96
    Eugene Norman
    Closed Accounts Posts: 5,191 ✭✭✭Eugene Norman


    Kenzie Early Sneaker wrote: »
    I would say its very relevant. If you earned more when you worked you paid much more tax you should therefore be entitled to a proportionally higher tax free return on retirement.

    No. It works the other way. Tax is deferred on pensions when working.


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    #97
    [Deleted User]
    Posts: 0 ✭ [Deleted User]


    Eugene Norman wrote: »
    No. It works the other way. Tax is deferred on pensions when working.

    Most of your pension pot the tax is deferred but you are entitled to a tax free lump sum also from your pot calculated as the post above.

    Also while the tax is deferred you can still pay less if for instance you are earning at the higher rate of tax. You can but money away pre-tax and then when you are getting your pension you only pay tax at the lower rate up the the marginal rate on the money where as if you didn't put it in a pension you would have paid the higher rate of tax.


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    #98
    Agent Smyth
    Registered Users Posts: 714 ✭✭✭Agent Smyth


    No mater what way you look at it, a pension is the most tax efficient way to save money


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    #99
    Eugene Norman
    Closed Accounts Posts: 5,191 ✭✭✭Eugene Norman


    HensVassal wrote: »
    You could live quite well on 20k a year if you retired to a beach hut in Bangladesh maybe

    It depends. House paid off. Savings. 20k a year could fund a pretty good lifestyle.


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    #100
    CabanSail
    Moderators, Category Moderators, Arts Moderators, Entertainment Moderators Posts: 9,047 CMod ✭✭✭✭CabanSail


    Deleted User wrote: »
    Everyone is entitled to a tax free lump sum, as long as they've work for over 20 years, of 1.5 times their final salary.

    This salary can include non-pensionable earnings and can be averaged out over a number of years.

    There is also an option of taking 25% of your fund value as a lump sum.

    The lump sum is tax free up to €200k, anything over that is taxed at a certain rate. Anything over €500k is taxed again.

    From reading your posts you either don't seem to know the rules around retirements or you're not explaining yourself very well.

    Whomever you are dealing with should take independent financial advice from someone who can explain to them clearly what their options are with frightening them that they are a victim of some government/wealth conspiracy.


    We understand it fully. All I am saying is that the system is skewed very much in favour of the wealthy. One would think it was a product of a country which has been dominated by centre right political parties.


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