Pensions industry challenges ‘benefit’ of auto-enrolment State contribution

  • 📰 IrishTimes
  • ⏱ Reading Time:
  • 46 sec. here
  • 5 min. at publisher
  • 📊 Quality Score:
  • News: 32%
  • Publisher: 98%

Pension ข่าว

Irish-Life,Auto-Enrolment,Tax

Irish Life says savers do better under existing tax-relief regime and new approach will hit take home pay of lower earners the hardest

Compulsory workplace pensions will leave even standard-rate taxpayers less-well-off than under existing pension arrangements, according to numbers presented by a senior industry figure.

However, numbers crunched by Irish Life make the case that people are getting a reduced benefit under the incoming system, which is currently passing through the Oireachtas and is scheduled to come into force next year.E-gates of hell signal start of travel chaos season Under existing tax relief rules for occupational pension, a worker paying tax at 20 per cent and contributing €1 to their pension, effectively only pays 80 cent because the money is taken from their earnings before the 20 per cent income tax is applied.

But that ignores that, under auto-enrolment, a greater sum will actually be invested in the pension – €2.33 for every €1 put up by the worker – than under the existing pension relief arrangement where the sum invested will be €2. “Auto-enrolment has an exaggerated impact on take-home pay as there is no tax relief,” he said, giving the example of someone earning €30,000.

 

ขอบคุณสำหรับความคิดเห็นของคุณ ความคิดเห็นของคุณจะถูกเผยแพร่หลังจากได้รับการตรวจสอบแล้ว
เราได้สรุปข่าวนี้มาให้อ่านอย่างรวดเร็ว หากสนใจข่าว สามารถอ่านฉบับเต็มได้ที่นี่ อ่านเพิ่มเติม:

 /  🏆 3. in TH

ประเทศไทย ข่าวล่าสุด, ประเทศไทย หัวข้อข่าว

Similar News:คุณยังสามารถอ่านข่าวที่คล้ายกันนี้ซึ่งเรารวบรวมจากแหล่งข่าวอื่น ๆ ได้

Will consumers benefit from Aviva entering the Irish health insurance market?With the insurer clearly seeing a gap in the market, ‘aggressive competition is to be expected’
แหล่ง: IrishTimes - 🏆 3. / 98 อ่านเพิ่มเติม »