€1M Pension Fund?

Taxburden carrier

AndrewJRenko wrote: »

Unfortunately, the fund that was there to pay for future pensions was cleared out to pay for our banking and property crisis. And I'm sure you know that 'ministerial pensions' are a drop in the ocean of overall public expenditure, so I'm not sure why you would mention them in this context? They have also been dramatically reduced for those appointed after 2010.



Anyone who retires early from the public sector has their pension actuarially reduced to account for less years paying in and more years drawing down. There is no extra cost to the State. Newer staff don't have the option of retiring early.

The public sector pension pyramid scheme will eventually shut down the country financially.

Atlantic Dawn

Taxburden carrier wrote: »

The public sector pension pyramid scheme will eventually shut down the country financially.

It's way too generous, almost €100 more a week than citizens of the UK get, completely unsustainable. House prices will make it even worse in that productive people can't afford to have children who will later work and contribute towards these pensions.

Ignore, I thought you meant the state pension

NinjaTruncs

McGaggs wrote: »

There is no guarantee that there will be a pension. It can be stopped at any time. It could be reduced in value, whether by inflation it legislation, so as to be worthless. The age for payment is likely to get closer to 80. There is no fund to pay it from, it depends on the goodwill of the taxpayer of the day. There's not likely to be much after the ministerial pensions are paid from the taxes collected.

Sure by increasing the age at which we get it, is the current plan to increase it until 68 or 69?, They have already greatly reduced the value of the state pension for those in there 40's, god know what will happen to those in there 20's.

AndrewJRenko

Atlantic Dawn wrote: »

It's way too generous, almost €100 more a week than citizens of the UK get, completely unsustainable. House prices will make it even worse in that productive people can't afford to have children who will later work and contribute towards these pensions.

I think yer man was referring to pensions for public sector employees, not the standard State pension for older people. I'm not sure why he picked that one particular contractual obligation of the State, especially in the light of the substantial reductions from 2003 and 2013. It would be interesting to compare the expenditure for both sets of pensions - public sector staff vs standard state pension.

Jim2007

cordy1969 wrote: »

In Australia they have mandatory super/retirement funds contribution. Every employee now matter how old, whether casual or full time once you earn over $450 per calendar month before tax then your employer must by law deposit the equal of 9.5% of your income into a super/pension fund that can not be touched until retirement age.

Why the Irish don't have similar requirements is lost on me.

Most of the EU/EEA/CH are either already operating a similar system or are on the way to getting there. Ireland will have to do the same as well because there is no other way to make it add up.

When I moved to Switzerland at 27 I had to pay 7% and the employer 14%. Twenty eight years later when I stopped it was 11% and the employer 22%. There was no choice, it was mandatory and that was that.

AndrewJRenko

Jim2007 wrote: »

Most of the EU/EEA/CH are either already operating a similar system or are on the way to getting there. Ireland will have to do the same as well because there is no other way to make it add up.

When I moved to Switzerland at 27 I had to pay 7% and the employer 14%. Twenty eight years later when I stopped it was 11% and the employer 22%. There was no choice, it was mandatory and that was that.

Mandatory pensions are imminent for Ireland
https://www.irishtimes.com/business/personal-finance/workers-could-have-6-of-pay-put-into-mandatory-pension-1.3604345

Grassey

homewardbound11 wrote:

Except for the crucial part - the last bit . Draw down before retirement .

You didn't mention that. Only retire when you want and draw down what you want, when you want.

So by retire, you could do that from 50 onwards from your job. And surely the tax benefits paying into the pension to give you the same size pot as paying full whack into an investment fund makes more sense? Unless you are managing to gain huge investment growth over and above that of the pension fund?

JMR

Thanks for all the replies, good info and certainly food for thought.
I'm a proprietary director myself so the benefits of paying into a pension fund are obvious.

With a fund value of approx. €150k I didn't think I was doing too badly at 43 years of age, guess I'll have to increase the contributions!

JMR

JMR wrote: »

Thanks for all the replies, good info and certainly food for thought.
I'm a proprietary director myself so the benefits of paying into a pension fund are obvious.

With a fund value of approx. €150k I didn't think I was doing too badly at 43 years of age, guess I'll have to increase the contributions!

doesnt it get far more tax efficient to do so as one approaches retirement age in any case

JMR

[Deleted User] wrote: »

doesnt it get far more tax efficient to do so as one approaches retirement age in any case

Don't think it can be any more tax efficient than it is to be honest and as far as I know the rules don't take into account how near to retirement you are. I'm no expert though

The J Stands for Jay

[Deleted User] wrote: »

doesnt it get far more tax efficient to do so as one approaches retirement age in any case

No, they just let you put more in.

The J Stands for Jay

AndrewJRenko wrote: »

Unfortunately, the fund that was there to pay for future pensions was cleared out to pay for our banking and property crisis. And I'm sure you know that 'ministerial pensions' are a drop in the ocean of overall public expenditure, so I'm not sure why you would mention them in this context? They have also been dramatically reduced for those appointed after 2010.



Anyone who retires early from the public sector has their pension actuarially reduced to account for less years paying in and more years drawing down. There is no extra cost to the State. Newer staff don't have the option of retiring early.

I just get annoyed at the ministerial double dipping. The whole suite of government pensions is overly generous. If they were funded it wouldn't be so bad...

lawred2

Jim2007 wrote: »

Most of the EU/EEA/CH are either already operating a similar system or are on the way to getting there. Ireland will have to do the same as well because there is no other way to make it add up.

When I moved to Switzerland at 27 I had to pay 7% and the employer 14%. Twenty eight years later when I stopped it was 11% and the employer 22%. There was no choice, it was mandatory and that was that.

one can only dream...

if mandatory pensions did come in here - could you imagine IBEC's response? Companies paying 5% - 7% are not the norm here and you'd swear they were doing you a massive favour.. 22%?? lol

Even the likes of Australia sees fit to have a real and meaningful super annuation system in place..

But then Ireland still has some growing up to do as a society and realizing that we're all in it together. Is it any wonder countries like Switzerland have such high standards of living.

Mandatory pension contributions at a meaningful level (double digits) is what's needed now in Ireland. Not talking about it. It's quite clear and has been for a while that the state pension system is just not affordable in its current guise.

lawred2

AndrewJRenko wrote: »

Mandatory pensions are imminent for Ireland
https://www.irishtimes.com/business/personal-finance/workers-could-have-6-of-pay-put-into-mandatory-pension-1.3604345

6% - it's a start but not enough.

What happens for all those employees in the state whose employer classes 5% contribution as a benefit.

Can no longer be considered a benefit if it's mandatory.

Tow

cordy1969 wrote: »

In Australia they have mandatory super/retirement funds contribution

Why the Irish don't have similar requirements is lost on me.

It was supposed to be introduced in 2019, then 2020, but PAYE Modernisation took precedence. The Public Sector are being hit with ASC for the Pensions next year as it is.

Pension Auto Enrollment is happening, but appears to have been pushed out to 2022.