Pension Age - should it stay at 66?

We don't need to increase PRSI. We could easily get the money by retroactively probing the tax affairs of big multinational corporations for potential windfall back taxes. I remember reading in the Indo that an Irish subsidiary of Abbott Laboratories made a profit of €1.8 billion in 2011 but paid no tax because it wasn't resident here for tax purposes.

The Apple Tax appeal should also be dropped and the Government should take the money. Other European Countries have retroactive taxation powers and I see no reason why we should be any different. The project fear narrative of "companies will leave if we do xyz" doesn't really bother me because the way I would look at it: is a multinational corporation really going to relocate to cheaper eastern European countries where there is geo-political tension with Russia? If so, good luck!

PRSI should not be increased on employees anyway, rather it should be increased on employers because a lot of corporations here don't pay the full 12.5% corporate tax rate so it's only fair that they be forced to pay higher employer PRSI. But as always, the current Government parties haven't got the courage to do this so I think the next election will be important in terms of fair taxation.

I used to think that the fable of the Golden Goose was too absurd to be credible. What farmer would strangle a goose that was making him rich?

But Ireland is full of people who want to get their hands around the throat of our golden goose and give it a good throttling.

And not just the Apples and Googles which have made us the envy of every small country aspiring to high-tech development. No, many like Spontindeed want to throttle anyone who gives employment!

Apple paid a 0.005% effective tax rate in Ireland so I think the Apple Tax isn't too much to ask. That's hardly going to throttle employment

The pension levy on public servants scrapped by Noonan just before the 2016 election should be reinstated as another possibility.

The Apple Tax money is ours, the European Union said that Ireland can use the Apple Tax money on public services and no other EU Country has yet made claim to any of it either. Furthermore, it was never repatriated to the us. So I think it's fair to say it IS ours.

Anyway, the European Commission can still use technical rules to force multinationals to pay more tax where unanimity with member states is not possible like they did when they reviewed Revenue's tax arrangement with Apple.

Don’t confuse the European Union with the European Commission. The Commission has campaigned for decades to undermine our economic model. When they didn’t get the power to control corporation tax, they claimed our tax arrangements were “state aid”, something they can control. The EU’s Court of Justice slapped the Commission down for that stunt in 2020. The Commission is appealing but, as things stand, Apple has paid its taxes due in Ireland.

I’ll bite. It wasn’t scrapped, the PRD has now been replaced by the Additional Superannuation Contribution (ASC).

Nobody will or can make any claim until the case is settled and claiming something is true does not make it it so. What technical rules are these now? The EU has no national tax competencies and recently agreed OECD rules on global taxation of at least 15% now supersede them. If anything Alphabet et al will agree to be taxed more in country, which really ruins your simplistic little plan .

Luxembourg pension age is 60, with a miniumum rate of 1841 euro per month, and a top rate of 8500 per month.

We could copy that 😁

They require a minimum of 480 monthly contributions of 24% gross income to the government’s fund for state pensions. The average pension payment is €3500 per month

Would people pay 24% of gross for 40 years though?

Hi Jim, I've no idea about Luxembourg and you seem to, just wondering then if they pay a quarter gross to pension each month, is this tax deductable, and do they pay 50%-ish on remainder of gross? i.e., is their net take home pay some 37-40%?

It's not that simple. They have a very long graduating rate from €11000 onwards. But as an example, an earner on €55000 pa pays about the same income tax as here on top of their pension contribution. You have to take account of tax credits before you bandy about your 50%-ish.

The bottom line is if you want a decent state pension and to retire mid 60s then you, or somebody, has to pay for it.

There needs to be a permanent public sector pensions levy.

I remember reading that the public sector pensions deficit was €200 billion but that it was being accounted for OFF BALANCE SHEET!

Also, the Government could tax gratuities/lump sum retirement payments of retiring public servants. It is crazy that a retiring public servant gets a €100,000 lump sum payment when they retire. But again, the Government hasn't got the courage to do this. So they will just target ordinary private sector workers. If Government attempts to auto enroll me in a private pension, I will opt out (you will only have 6 months to opt out under the current proposals). I work in the private sector.

Not really when you compare the generous public sector pensions to the private sector (public sector pensions levy is needed). The other day I read that Micheal Martin is to throw more money at the public sector under the pretext of 'pay restoration' (why do politicians call it that given it was never sustainable in the first place).

Also, when you look at the sweetheart tax deals offered to big corporations in Ireland, the retirement age could be restored to 65.

theres actually no need for this at all, people spend long enough working, they should be able to retire at an appropriate age, to enjoy the remainder of their life in relative peace

...or what happens if current workers require all of their earnings to meet their current needs!

So remove all the corporate tax breaks. Half the public services pension rate.

Pension at 66 is still unsustainable.

If it was only slightly unsustainable ...

...oh dont worry, thats gonna happen very very soon, it clearly obvious that this government is toast, in particular the main parties, but what extent of damage will be done by then, particularly in relation to our most critical sectors, and will it be possible to change this!

...its also understandable why many dont vote, as does it really matter, and does our political systems truly exist for all peoples needs, or for only certain interest groups! maybe these folks seem to think so, maybe.....

...in order for people to have a fair crack of the whip, things kinna need to be reasonably fair to begin with!

There is.

The PRD was made permanent, this has already happened.

It is now renamed the Additional Superannuation Contribution (ASC), and it is permanent.

It is 10% of wages above 34k.