High earners to keep more of their pensions

High earners will be able to keep more of their multimillion-euro pensions after the finance bill rowed back on some of the extra tax liabilities introduced last year.

Budget 2011 more than halved the standard fund threshold (SFT) — the value a pension fund can reach before it becomes taxable — from €5.4m to €2.3m.

However, top-paid workers are to be given a one-off chance to cash in all or part of their pension fund to keep it below the SFT without incurring stiff tax penalties.