Question: I am 45 and have started to look at starting a private pension but my understanding is that whilst tax relief is available on the contributions, the proceeds of the final pension are also fully taxable so unless I am missing something major here, what is the whole point in investing?

Answer: Pension Planning is an integral part of your financial journey, and it is so important that you fully understand not only how the tax works, but you also need to consider other important particulars including the relevant costs, the funds available, accessibility, etc. I completely understand your confusion here and I will do my best to clarify as clearly as possible how pensions are taxed in Ireland and how much tax you can expect to pay when you draw down the funds at your chosen retirement age.

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