From a retirement planning perspective there were no significant changes to the private pension system announced in yesterday’s budget. However, it is possible that there might be some relatively small changes in next week’s Finance Bill. If so, these will likely be focused on addressing some anomalies in some of the structures available (such as PRSAs and AMRFs), rather than changes to fundamental elements of the private pension system such as tax relief and fund thresholds. Unfortunately there has been no attempt to address the pensions inequity between public and private sector workers.
Please see below for some of the key points within Budget 2022:
An increase of €1,500 in the income tax standard rate band for all earners, from €35,300 to €36,800 for single individuals and from €44,300 to €45,800 for married couples / civil partners with one earner
An increase of €50 for the following tax credits -Personal Tax Credit, Employee Tax Credit and Earned Income Credit from €1,650 to €1,700
The legislative information contained herein is based on Harvest Financial Services Limited’s understanding of current practice as at October 2021 and may be subject to change in the future. The marketing material is not intended to provide advice and is provided for general information purposes only.