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occupational pension scheme maths help.

  • 20-10-2020 8:45pm
    #1
    Jimson
    Closed Accounts Posts: 164 ✭✭


    I've paid 6% into it and employer matched for 25 years.

    So say my pension is worth 300K on retirement. My yearly salary on retirement id 50K.

    I can take 75K(50*1.5) tax free as a lump sum i understand that. The part I'm not sure of is can just take the remaing 225K as a lump sum and is it just 20% tax they charge on the 225K?


Comments

  • #2
    Wuff Wuff
    Closed Accounts Posts: 1,429 ✭✭✭Wuff Wuff


    you will have various options on retirement

    if you take the 1.5 x Salary the rest has to be put in an annuity

    the alternative is to take 25% of your fund value as tax free cash and the rest can be invested in an ARF/AMRF or taken as a taxable sum if you can prove a gauranteed income of €12,700 or already have €63,500 in an AMRF

    (i think, someone please correct me if im wrong)


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