Archive for the 'Pensions' Category

The Finance Bill opens up PRSAs

The Finance Bill opens up PRSAs

The Finance Bill has made some interesting changes to funding for retirement, namely in PRSAs. Current rules At present, employer paid contributions to an employee’s PRSA is a Benefit in Kind (BIK) for tax purposes. But the BIK is not put through the PAYE system so the it does not attract USC & PRSI taxes, […]

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The sorry mess that is the State pension

The sorry mess that is the State pension

We all know the State pension is a ticking timebomb. The Pensions Roadmap 2018 – 2023 stated that over the next 40 years, the ratio of workers to pensioners is expected to fall to 2.3:1. This is going result in a pension deficit of €400 billion over the next 50 years if changes weren’t made. […]

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The Pensions Authority kills Executive Pension Plans

There is a lot of pension legislation coming from Europe that is having a big impact on pensions in Ireland. It is important to have an idea of where this has come from first. The first directive, known as IORPS I was introduced in 2004/2005. The government at the time availed of an option not […]

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Is the auto enrollment scheme beneficial for those paying income tax at the higher rate

One of the features of the auto enrollment pension scheme is that members will not get tax relief on their contributions. Instead, the State will make a top-up contribution to your pension pot and your own contributions will be deducted from your net salary (the payment amount will be calculated from gross salary). The government […]

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Details of the Auto Enrollment Pension Scheme announced

Details of the Auto Enrollment Pension Scheme announced

Minister for Social Protection, Heather Humphreys, published the framework for the pension auto enrollment scheme. This is something that has been talked about since 2007, so it is good to see things moving forward and it looks like it is actually going to happen. We have written about this before, so I am not going […]

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It’s the wager, not the odds

Liverpool Football Club won the League Cup (I can’t keep up with the change of sponsors, so I just call it the league cup, much to my son’s amusement) last week. It was an entertaining 0-0 draw with both sides having goals disallowed for marginal VAR decisions. Liverpool won the penalty shoot-out 11-10. Liverpool are […]

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The Pension Commission Report

In 2018, the government published its Pensions Roadmap. We wrote about it at the time.  In the 3.5 years since it was published, none of the recommendations have been implemented. There was however an election in 2020 and the age for receiving the State pension was due to be increased to 67, so it became […]

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How to fix pension charges

A couple of weeks ago, I wrote a response to an article that claimed that investors were paying 3% in pension charges. We showed that this was not true, but a valid point was raised, pension charges are opaque and need to be more transparent for investors. Get rid of allocation rates Allocation rates are […]

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No, you are not paying 3% in charges for your pension

I have set up Google alerts for a number of different keywords, so every morning I get an email with articles linked to that keyword. One of those keywords is pensions and last Monday I got an alert to an article saying that six in every ten euro in a pension pot being consumed by […]

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Pension Reform Report

The Government published a Report of the Interdepartmental Pension Reform & Taxation Group (ITPRTG) on 13 November 2020. This group was formed in 2013 from various government departments and bodies and they looked at how to simplify pensions. The report itself is 145 pages long and can be read here. They have certainly recommended big […]

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