Standard Fund Threshold Update
On 14th December Minister for Finance Michael McGrath announced that he is beginning a targeted review of the Standard Fund Threshold (SFT) regime.
The current SFT threshold
Introduced in December 2005 and unchanged since 2014, the Standard Fund Threshold (SFT) is the limit or ceiling on the total capital value of tax-relieved pension benefits that a person can draw down in his or her lifetime from all of their pension arrangements. The current SFT stands at €2 million.
The Review process
A public consultation which opens shortly and will run until 26th January 2024, will be the first step in a review process that Minister McGrath has stated will set an "an appropriate and fair level of estimated retirement income" and will consider the impact across taxpayer groups and between “public and private sector workers”.
The Public consultation will hear proposals from both industry and the public.
More on this development to follow in due course.
Author: Robert Smith
Robert Smith is a Qualified Financial Advisor with Compass Private Wealth.
Disclaimer: The above is generic in nature and does not constitute financial advice.