Pensions |
Post Reply | Page <1 789 |
Author | ||
Zinedine Kilbane 110
Jack Charlton Man City records obsession Joined: 20 Mar 2012 Location: Dundalk Status: Offline Points: 9647 |
Post Options
Thanks(0)
|
|
Yeah the Irish tax system doesn’t really encourage you to save/invest other than a pension! In the UK you have an ISA - you can put £20k every year into investments and all income and capital gains is tax free. With a couple this is £40k and if you have childer it’s £9k each. So a family with 2 kids can put away £58k away tax efficient. Also there is a generous £12k annual CGT allowance so you could spread out the selling of your investments over years and reduce the amount of CGT you pay. On top of that there is other reliefs available to invest in non-listed companies/start-ups. Actually the UK system is very good. I think the US have something similar as everybody over there has a ‘portfolio’. Irish people save a ridiculous amount in cash. It’s way more than other developed countries but the tax system doesn’t really encourage them to invest in other asset classes. |
||
|
||
pre Madonna
Robbie Keane I am MALDING Joined: 30 Nov 2014 Location: Trumpton Status: Offline Points: 44659 |
Post Options
Thanks(0)
|
|
If you can afford to put away 58k then you aren't being taxed anywhere near enough. The UK system is appalling.
|
||
PanteirA
Jack Charlton Joined: 29 Jul 2012 Location: Ciarrai Status: Offline Points: 6744 |
Post Options
Thanks(0)
|
|
Started a new job recently and I have the choice of a Defined Benefit pension with employee contributions of 13.25% - employer 13.85% or Defined Contribution pension of employee 5% - employer 10%
I think I am going to go with the DB option as I am 37 and have fcuk all of a pension behind me, even though its a significant jump in my contribution but I believe its the right option for me at this point Would you take the same option as me if you were in my position? |
||
Green Cockade
Liam Brady Joined: 22 Jan 2020 Location: Belfast Status: Offline Points: 2692 |
Post Options
Thanks(0)
|
|
Absolutely. Defined benefit pensions are rare these days and often described as 'gold plated.' Based on final salary and normally index linked, they give you a guaranteed and predictable income throughout your retirement. By contrast, defined contribution pensions are dependent on the vagaries of the stock market so not predictable and by any objective standards an inferior product.
|
||
Zinedine Kilbane 110
Jack Charlton Man City records obsession Joined: 20 Mar 2012 Location: Dundalk Status: Offline Points: 9647 |
Post Options
Thanks(0)
|
|
Yeah there is a reason very few private companies give defined benefit pensions and every government organisation has a massive pension hole due to generous defined benefit pensions. See Bus Eireann DB all the way. Although I believe now it’s more average salary rather than final salary but still way better. |
||
|
||
Post Reply | Page <1 789 |
Tweet
|
Forum Jump | Forum Permissions You cannot post new topics in this forum You cannot reply to topics in this forum You cannot delete your posts in this forum You cannot edit your posts in this forum You cannot create polls in this forum You cannot vote in polls in this forum |