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occupational pension scheme maths help.

Jimson · 2020-10-20 20:45:09

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…

20-10-2020 09:45PM

#1

Jimson

Closed Accounts Posts: 164 ✭✭

Join Date: October 2020

Posts: 160

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?

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Comments

#2 21-10-2020 08:55AM

Wuff Wuff

Closed Accounts Posts: 1,429 ✭✭✭

Join Date: March 2020

Posts: 1153

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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