Great advice until at some point they change the rules when the FDI goose stops laying, and tax the bjaysus out of it retrospectively.
Why not pay off the mortgage?
That’s SF’s stated policy. They want to reduce maximum fund size and greatly reduce the tax break / deferred tax on the contributions. A terrible long term decision.
It would be far better to increase the allowances (and maximum fund size) and to means test the state pension. Everyone’s a winner.
Financial literacy in Ireland in general is appalling. Hundred of thousands think they’ll be able to live on a state pension in retirement. Firstly, there’s no way it can keep pace with inflation and secondly I suspect it won’t exist in 25 years.
Still though it will make a great headline manifesto for SF to tax “gold plated” pensions.
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It’s cheaper money than anything else you’re paying off?
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There was a long time when they were in the region of 8-13%. Granted there was tax relief on the interest for a lot of that time.
I don’t think you can tax retrospectively, can you?
What is the threat?
An annual levy such as 10+ years ago?
TFK has been crying out for a why not pay off the mortgage early debate. Must be nearly 3 months since we’ve had one.
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Can one of the bean counters on here ladybird the situation around investing in funds and the issues surrounding tax?
No but you could tax the absolute fuck out of withdrawals.
Sinn Fein are going to be stymied by our fabulous civil service.
State pension is a ticking timebomb. Ive accepted that ill get fuck all off it and/or be working till im 75. Highly doubt id last that long either
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SF wont get into government and if they did they would be no different to ffg
Unfortunately you can, sort of. In the UK they firstly reduced your pension pot size allowed, which was at least transparent, but they then brought in an absolute maximum pension input per year of, I think 30k.
So far so good.
They then included pension growth in this figure, so if your pension is wisely invested you start getting hammered with tax. Some folk started getting tax bills of 250k out of the blue. Not rich people as such, just savers. A local GP here had to remortgage his home.
Alternatively they take it off you when you draw it down but charge punitive cumulative interest.
It’s in absolutely no way fair or right, but they did it anyway, same as removing child allowance if there’s an an earner over 60 k p a in the home. In this way, two earners on 59k get full child allowance. One on 60 gets none.
They did it on tax avoidance schemes, which were perfectly legal until they weren’t and then they absolutely destroyed innocent people with back tax and interest, most of whom were only following financial advice and had no knowledge of finance.
Trust funds though. Untouched.
The Tories are absolute cunts.
I think accepting that the state pension is a bonus if you get it is the best way. Don’t factor it in to any planning.
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Check this out. I was chatting to herself’s cousin the last day who runs a business in Birmingham.
He said his sales director, a perfectly intelligent lady, got a polestar as a company car having worked out the finance/bik/ etc.
She got it home when it dawned on her she had nowhere to charge it because she lives in a penthouse apartment.
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Costing you 3% interest to have it and costing you more in tax relief not to invest in your pension which should definitely earn 3% a year
Same answer as last time
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Agreed considering that more people are drawing from the pot while the balance feeding in is shrinking relatively it would be a fair assumption the pension wont increase with the rate of inflation in the mean time between now and when im eligible
Have a work pension with Friends First. I have it set at the lowest risk and a friend was saying I should be changing to a higher risk. Know feck all about these sort of things. Who’s our go to Pension man?
You go lower risk when approaching retirement.
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