What are the Tax Benefits of an Account Based Pension (ABP)?
Tax Benefits of an ABP
Typically, any investment income or capital gains accumulated in a pension account, such as an Account-Based Pension (ABP), are not subject to tax. This means that the returns generated from the assets within the ABP are tax-free.
However, it’s important to understand that there are exceptions. Certain types of income, including taxable contributions and dividends from some private companies, remain taxable even when they are earned through a pension fund.
