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Old 12.04.2007, 01:58
Richard Richard is offline
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Re: Quick question about pension pillars

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Is it really that simple? I sat through a presentation on my works "welcome day" that had us building a model house that was supposed to represent the pension system, and also listened to some spiel from my Relationship Manager at my bank. I remained unenlightened after both.

Why can't finance types explain things in plain language?
More or less!
Pillars:
1 is 5.05% (x2) of salary to 8900 and 1% above that
2 is company specific but with a sliding scale minimum and maximum
3 is maximum 6365 and voluntary

For pillar 2 if you are below the maximum permitted for your age you can annually top it up which is tax efficient ie deductable.

I guess your house was also taking into account IV gap which is something else.
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