Very high tax on my aunt's teacher pension - getting screwed

sellasheep

My 70 year old aunt is a retired secondary school teacher. All she has is her private pension of 31,200 per annum (600 per week) as she can't claim a state pension.

On her pay slip it says that she is paying USC of €14.77 per week!! How are they working that out? I thought it was 0.5% of a certain amount and then 2% on the rest for anyone over 65.

Then tax of €51.83 per week!!! Absolute disgrace so it is. I work that out by multiplying the 600 × 20% rate of tax and then deduct her 3 tax credits of single, employee tax credit as she pays pate in it and then that age tax credit.

Surely this is wrong. Does anybody know if the figures are wrong here and what tax should she be paying?

She can't even get a medical card or fuel allowance!

Franz Von Peppercorn

The total deductions there sound right.

Stheno

sellasheep wrote: »

My 70 year old aunt is a retired secondary school teacher. All she has is her private pension of 31,200 per annum (600 per week) as she can't claim a state pension.

On her pay slip it says that she is paying USC of €14.77 per week!! How are they working that out? I thought it was 0.5% of a certain amount and then 2% on the rest for anyone over 65.

Then tax of €51.83 per week!!! Absolute disgrace so it is. I work that out by multiplying the 600 × 20% rate of tax and then deduct her 3 tax credits of single, employee tax credit as she pays pate in it and then that age tax credit.

Surely this is wrong. Does anybody know if the figures are wrong here and what tax should she be paying?

She can't even get a medical card or fuel allowance!

Deloitte tax calculator gives a net income of 537 so its not far off.

The usc seems a bit high but the paye looks right

Needles73

What's so disgraceful ?

relax carry on

That's an effective tax rate of just over 11%.

mickdw

By my calculations, she should be paying about 8.50 usc each week but the reduced rate is only applicable to those 70 or over so maybe she has not gone onto the reduced rate yet if she has just turned 70.

sellasheep

mickdw wrote: »

By my calculations, she should be paying about 8.50 usc each week but the reduced rate is only applicable to those 70 or over so maybe she has not gone onto the reduced rate yet if she has just turned 70.

She was 70 last December. What maths did you do to work out 8.50?

Bubbaclaus

You make it sound like she's on the breadline. Highest contributory state pension is less than a 13,000 per year. She's on a very nice public sector pension and her effective rate of tax is barely 10%.

5red

If anyone is getting screwed here it's the Irish tax-payer.

Hitman3000

sellasheep wrote:

My 70 year old aunt is a retired secondary school teacher. All she has is her private pension of 31,200 per annum (600 per week) as she can't claim a state pension.

It's not a private pension it's a public sector pension. 600 a week she's not exactly on the fringe of proverty now is she?

SEPT 23 1989

Screwed?

Most of us could only dream of a pension like that upon retirement

Dakota Dan

She can't get a medical card or fuel allowance, are you for real?

namenotavailablE

Based on a 70+ year old earning €31200 through an occupational pension, I agree with the calculations of €51.83 PAYE per week and USC of €8.54 per week as correct.

mickdw

sellasheep wrote: »

mickdw wrote: »

By my calculations, she should be paying about 8.50 usc each week but the reduced rate is only applicable to those 70 or over so maybe she has not gone onto the reduced rate yet if she has just turned 70.

She was 70 last December. What maths did you do to work out 8.50?

For the usc, 0.5 % on first 12012 income and 2 % on remainder works out at roughly 444 per year or a little over 8.50 weekly.

delboythedub

You would want €750000 in a private pension fund to get €600 a week.

myshirt

delboythedub wrote: »

You would want €750000 in a private pension fund to get €600 a week.

More even.

Think the op is taking the piss to be honest with you.

Op, you could have enhanced the post by saying the aunt has 2 cars to run, a couple of dogs to take care of, and she can't even get a medical card for her and the dogs.

thesimpsons

sellasheep wrote: »

My 70 year old aunt is a retired secondary school teacher. All she has is her private pension of 31,200 per annum (600 per week) as she can't claim a state pension.......

She can't even get a medical card or fuel allowance!

there's many a working person with young kids to support earning 31,000 and still have to pay taxes, etc. However, you are wrong, she can qualify for the GP medical card with a weekly salary of over 500e but under 700e. she can also qualify for the household benefits package.


https://www.hse.ie/eng/cards-schemes/medical-card/medical-card-for-over-70s/

http://www.citizensinformation.ie/en/social_welfare/social_welfare_payments/extra_social_welfare_benefits/household_benefits_package.html

Squatter

The sense of entitlement in the OP is jaw-dropping!

Tow

Squatter wrote: »

The sense of entitlement in the OP is jaw-dropping!

Padraig Flynn on the Late Late Show:
https://www.youtube.com/watch?v=9ORNfD8e_sk

splinter65

Squatter wrote: »

The sense of entitlement in the OP is jaw-dropping!

You have no idea the expectations some people have. The audacity is shocking. This lady probably retired at 55/56 too.

brightspark

You aunt is three years younger than you, surely she can look after her own tax affairs.

https://www.boards.ie/vbulletin/showpost.php?p=106693135&postcount=1


or are you 29? Kudos on passing your test at 17, especially considering all those who drive on learner permits for years

https://www.boards.ie/vbulletin/showpost.php?p=105825978&postcount=1

Larbre34

It hasn't dawned on half the country yet that they arent going to get even a fraction of this particular example for their own pension. There is a timebomb, no doubt.

I did laugh at the OP saying she cant even claim a state pension. She was never meant to, the old class D public service level meant she paid feck all PRSI her whole career and yet was guaranteed to retire on 50% of final pay once she had the service. Not to mention the lump sum of about €100,000 she wouldve got too.

The public service pensions of pre-1995 vintage, are the most lucrative of any in the history of this state and we will never see their like again.