Social charge's effect on pension
John: I am a retired 60-year old with an annual pension of €21,660. My wife does not work. How will the budget impact on me? I currently pay the 2pc income levy on my pension. Will I pay more with this new social charge?
Under the new universal social charge John will pay €835 in 2011 whereas he only paid €433 income levy in 2010. This results in an additional cost of €402.