Medical Consultants: Planning for the standard fund threshold at retirement

In Ireland, there is currently a funding cap on pensions of €2m. This is known as the standard fund threshold. This is the maximum amount of pension that can be accumulated before a second tax is applied to the pension. This is a tax rate of 40% on the excess of over €2m. It applies to both private pensions (both defined contribution and defined benefit) and also public sector pensions.