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pensions |
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sample illustration
Jack
is 30 years old on his next birthday and contributes €200 per month to his Personal Plan (indexing
at 5% per annum).
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Illustrative Fund Values |
6%
|
8%
|
|
At end Year 1 |
€2341.29 |
€2365.56 |
|
At end Year 2 |
€4916.71 |
€5014.98 |
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At end Year 25 |
€188,772.33 |
€241,414.23 |
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At end Year 30 |
€289,111.97 |
€389,171.02 |
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At Pension Age |
€301,249.17 |
€407,587.19 |
Options
- Take
Tax Free Cash Lump sum of 25% of fund (€101,897)
& use balance to buy an annual pension, or
- Take
Tax Free Cash Lump sum of 25% and invest €63,000
in Approved Minimum Retirement Fund, and
- Liquidate
balance (excluding €63k to ARF) = (less tax
@ 42% + Levies @ 2% ) = €135,906.61, or
- Invest
the balance in an Approved Retirement Fund = €242,690.39
Options with the ARF / ARMF
a)
Gross Roll-Up Within Funds - withdrawals are regarded
as income.
b) Leave the ARF intact. On death at say, aged 70,
spouse would 'step into shoes' and continue the ARF/AMRF
with same options. On death of spouse, if fund left to
children aged over 21, a special tax rate of 25% of the
original investment would apply.
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