Who are the best-off pensioners in Europe when all comparable taxes, deductions and cost-of-living differences are taken into account? The Greeks, Italians, Germans and Luxemburgers, according to the latest edition of Guide to Employee Benefits and Labour Law in Europe published by consultants Sedgwick Noble Lowndes. Ireland is in joint seventh place with the Danes (out of 15 countries surveyed) for the size of net pension as a percentage of our net average national earnings. Whereas the Greeks can expect a net pension that is 103 per cent of their net average earnings, when they retire, we can expect the equivalent net pension of 84 per cent of our net earnings. Pity the poor Finns, though, with just a 73 per cent equivalent net pension.
Employees here who earn twice or four times the net average national earnings can expect slightly lower net pension to earnings percentages: 82 and 80 per cent respectively. The percentage of net pension per earnings drops far drastically in Greece, Germany and Italy, and most other European countries once you earn multiples of the net national average earnings, presumably because of the caps put on state pensions.
The guide also shows that employees on national average earnings here and in Luxembourg and Italy have a better standard of living when tax, social welfare contributions and the cost of living is taken into account. Ireland's net earning power is the equivalent of $10.40 (£7.12) an hour, compared to $9.60 (£6.50) an hour for the Germans or $4.70 (£3.21) an hour for the Portugese, at the bottom on the league. This 128-page guide is well worth its £49 price tag for any company transferring employees abroad (the statistics include Japan and the US as benchmarks) or to any individual thinking of moving to the rest of Europe. Copies are available by calling 0181 666 8229.
Meanwhile, the latest edition of Price Waterhouse's useful booklet, Foreign Citizens Working in the Republic of Ireland, has also just come out and should be essential reading for anyone moving to Ireland to work. The guide includes chapters on residency as it affects the individual's tax status, income and other taxes payable here, the social security system, and the importance of timing a move to try and reduce the first year's tax liability. It also covers other important matters such as the implications of tax treaties between Ireland and other countries, what is involved in importing a car and possessions, available child benefits, local and property taxes, whether to rent or buy a property, etc. The last chapter is devoted to Price Waterhouse's services, using fictional case studies. A free copy of this booklet is available from Gardiner House, Wilton Place, Dublin 2, Tel. (01) 662 6000, Fax: (01) 662 6200.
