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Zinedine Kilbane 110 View Drop Down
Jack Charlton
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Post Options Post Options   Thanks (0) Thanks(0)   Quote Zinedine Kilbane 110 Quote  Post ReplyReply Direct Link To This Post Posted: 29 Nov 2020 at 8:29am
Originally posted by Shedite Shedite wrote:

Originally posted by JUICEBOMB JUICEBOMB wrote:

Was chatting to a mate of mine that invests directly in US equities (seems to be doing quite well with a US petroleum company)..he did mention the capital gains tax...he said its 33%of most gains but 40% for gains in foreign life polices or foreign investment products.....so do you lose 40% of all your gains when you want to take it out???has to be some sort of loophole there to get the few bob out?
Unfortunately not, unless ya wanna emigrate somewhere for the year you're cashing out.

CGT is only paid on a gain, better to make a gain and give some to the taxman than not make a gain.

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.



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pre Madonna View Drop Down
Robbie Keane
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Post Options Post Options   Thanks (0) Thanks(0)   Quote pre Madonna Quote  Post ReplyReply Direct Link To This Post Posted: 29 Nov 2020 at 8:43am
If you can afford to put away 58k then you aren't being taxed anywhere near enough. The UK system is appalling. 
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PanteirA View Drop Down
Jack Charlton
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Post Options Post Options   Thanks (0) Thanks(0)   Quote PanteirA Quote  Post ReplyReply Direct Link To This Post Posted: 24 Jul 2021 at 12:32pm
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?


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Green Cockade View Drop Down
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Post Options Post Options   Thanks (0) Thanks(0)   Quote Green Cockade Quote  Post ReplyReply Direct Link To This Post Posted: 24 Jul 2021 at 2:18pm
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.
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Zinedine Kilbane 110 View Drop Down
Jack Charlton
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Post Options Post Options   Thanks (0) Thanks(0)   Quote Zinedine Kilbane 110 Quote  Post ReplyReply Direct Link To This Post Posted: 24 Jul 2021 at 4:23pm
Originally posted by Green Cockade Green Cockade wrote:

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.

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. 



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