Pensions & the Government Four-Year Plan

 The full Recovery Plan document can be read on www.budget.gov.ie

 Private Pensions

The main proposals that impact on private pension provision are:

• All lump sums in excess of €200K will be taxed, probably from Budget Day.

• In 2011 the Earnings Cap will be reduced from €150K to €115K.

• Next year will also see the abolition of PRSI & Health Levy relief linked to pension contributions.

• The Standard Fund Threshold will also be reduced, details in the Budget.

• The maximum rate of relief for personal pension contributions remains the same for 2011 at 41%, but the following reduced relief rates are proposed:

Year    Rate

2012    34%

2013    27%

2014    20%

• There is no indication that the tax treatment of employer contributions will change.

• There is a very strong hint that the proposed auto enrolment scheme will never happen.

 Good Financial Housekeeping – Helping to make your income go further

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