No private pension

[sole]

I am mid 50s with 10,000 SSIA which matured in November last. I have no private pension scheme in operation. If I was to consider putting 7,500 into Pension fund am I late to avail of Government top up of 2,750?

Should I consider putting 10,000 into Post Office and add to it as much as possible - in that way when I retire I will have access to my savings whenever required.

If I start private pension fund at this stage the return will be quite small in 10 years time and the payments will be spread over a long number of years? I will be paying income tax on the amount received as it will be included as income along with State Contributory Pension - and my husband will be availing of full tax credits?

Any advise - please.

 

[Abbeykiller]

There is a 3 month deadline after maturity of your SSIA to avail of the pension top up but I don't know how rigid this is.
The question of whether to start a private pension/PRSA at any stage depends on your personal circumstances. The main benefit to you in your mid 50s is the large proportion of salary that you could offset against tax at the higher rate. If you are not working at all or on the lower tax band then it may not be worth your while. The downside of having all your money in a pension fund as opposed to a regular managed fund (or tracker fund) or savings account is the restrictions on how you can use the fund when you reach retirement age.

And I wouldn't recommend the Post Office to save money - you won't see them on any Best Buy lists of savings accounts. Look in the Saving and Investments section for a plethora of accounts with much higher interest rates.

 

[boaber]

Too late for the SSIA Pensions Incentive i'm afraid - it's written into legislation, so it's pretty rigid. The following is from the Revenue's website:

3-month time limit for pension subscription

SSIA holders are obliged to make a subscription to an approved pension product within 3 months of the maturity date concerned.

For SSIA maturities in May, June, July and August 2006, the cut off point for the PITC scheme is extended to 31 December 2006. For maturities from September onwards, the three-month time frame set out in the legislation will apply.

The details are as follows:



May maturities limit now extended to 31 December 2006.


June maturities limit now extended to 31 December 2006.


July maturities limit extended to 31 December 2006.


August maturities limit extended to 31 December 2006.


September maturities 3-month time limit applies and cut off point is 31 December 2006.


October - April maturities - 3-month time limit will apply to these.

 

[ClubMan]

am I late to avail of Government top up of 2,750?

As above - yes.

Should I consider putting 10,000 into Post Office and add to it as much as possible - in that way when I retire I will have access to my savings whenever required.

There are better deposit rates on offer. See the . If you are investing for a medium/long term period then you might want to consider a low charges unit linked fund with a risk/reward profile that matches your specific needs.

If I start private pension fund at this stage the return will be quite small in 10 years time and the payments will be spread over a long number of years?

Possibly but with a pension you benefit from tax/PRSI relief on contributions, tax free growth and the ability to take up to 25% of the lump sum tax free. If you are paying 41% tax then making pension contributions is often a good idea. If you are paying 20% tax then maybe not. But but it depends on many other factors too.

I will be paying income tax on the amount received as it will be included as income along with State Contributory Pension - and my husband will be availing of full tax credits?

Depends on your specific circumstances and the amount of money involved but all pension income is generally assessable for income tax as normal.

Any advise - please.

You should get independent, professional advice in my opinion. Do you own your own home already?