I am trying to work out approx how much a pension pot of 1million for example is actually worth in my back pocket. If i have a pension worth 1 million and decide to retire at 55. How much is that pension actually worth if i follow the 4% rule.
Here is my understanding. 1) 25% is tax free upto 200k so 800k left. 2) 500k of this is taxed at 20%.
1) 200k to me
2) 400k to me . 100k to taxman
3) Now there is 300k left that is taxed at ??
A) is this how pensions actually work?
B) if correct how does item 3 work
C) How does an Arf come into play here?
D) I think in ireland you must drawdown 4% minimum. Is that correct.
C) say i retire at 55, and have my own person cash to cover the first 5 years, can i defer steps 1,2,3 above
D) if someone has an irish related link that explains all this i am happy to read.
Here is my understanding. 1) 25% is tax free upto 200k so 800k left. 2) 500k of this is taxed at 20%.
1) 200k to me
2) 400k to me . 100k to taxman
3) Now there is 300k left that is taxed at ??
A) is this how pensions actually work?
B) if correct how does item 3 work
C) How does an Arf come into play here?
D) I think in ireland you must drawdown 4% minimum. Is that correct.
C) say i retire at 55, and have my own person cash to cover the first 5 years, can i defer steps 1,2,3 above
D) if someone has an irish related link that explains all this i am happy to read.