Sadly, David, your PRSI was spent on providing pensions for current pensioners, it is not put into a fund. All it gets for you is the entitlement of a state contributory pension at what ever rate it happens to be when you retire.

It is the same in all democratic countries in modern society. It is not unique to Ireland.

The “some are more equal than others” part!

You may be astonished to learn that the majority of the elderly, whilst not rich, are relatively comfortably off. It is the current generation of 30 to 45 year olds who are most vulnerable to poverty in old age.

How is that double tax exactly? the levy is a small contribution towards gold plated public sector pensions. Yes you get taxed on income afterwards, but you get way more than you put in.nnYou’re confusing my pension, which is paid for by contributions between my employer and I, and yours, which is basically free money from the state when you retire.

@Ronan

15% of income is a small contribution? And if you think public servants get more for their pensions than they contribute, please read The Trident Report on public service pensions. Anyone who has entered the public service in the last 10 years will probably contribute more to their pensions than they’ll get back. I wouldn’t call that gold plated.

Pension levy, being the 0.4% p.a. charge levied on pension funds. Not to be confused with the pension imposed on the public sector.

The pension levy I refer to is the 0.4% p.a. charge that’s is being imposed on private sector pension funds for a 4 year period

@Ronan

Just noticed there “free money from the state”. So you think after anything up to 45 years of service, public servants should get no pension? I’m glad to see your employer contributes to your pension. They should. Mine doesn’t.

Spot on!

What a comment! :-)

On the other hand you could take responsibility for your own life.

I strongly believe no TD should receive more than the €30k pa pension, A few years being paid handsomely by taxpayers and either doing nothing but sorting a few potholes for 10 years or making a complete bollix of the country they still get ridiculous sized pensions while they plunder ours and laugh in our faces.
Elected on 4 year terms to represent us, not voted for to live off us luxuriously for ever after while we slowly starve for their benefit and failures!

Sorry but you are wrong with your assesment: (1) You get tax relief at your marginal rate on the way in (2) you get tax free growth while you are in there, and (3) you get free cash of 25% of the fund on the way out. Yes the government takes a levy of 0.6% of the value of the fund annually. Work out the long term tax benefits versus the cost if this and you will find you are still better off. I find your comments show a lack of understanding of pensions. If you fail to save for a pension now, I suggest you prepare for working well into your 70′s to live, and all without a state pension. I can’t see 230.30 per week lasting forever. I know it won’t be there when I retire in 2040 so I’m putting money in every month but I understand how pensions operate. Listen to professionals with an open mind and prepare to learn how important this is and will be. @eric, I am not seeking to target you, you just happened to post the comment!