Moneymakeover 58 No Pension - Mortgage Free - How best to invest €40,000

[S class]

@eyesgreen_1
You can set up a private pension (PRSA) based on your 10k self employment. You can invest your maximum age related tax relievable percentage of this 10k into this PRSA each year. You will get 25% of this PRSA as a tax free lump sum on top of your public sector scheme tax free lump sum.

You can have this private PRSA alongside AVCs related to your public sector earnings.

 

[eyesgreen_1]

You can set up a private pension (PRSA) based on your 10k self employment. You can invest your maximum age related tax relievable percentage of this 10k into this PRSA each year. You will get 25% of this PRSA as a tax free lump sum on top of your public sector scheme tax free lump sum.

You can have this private PRSA alongside AVCs related to your public sector earnings

Thanks for this.

Do you know, if at some point I leave the public service job in Northern Ireland , can I then transfer that pension into the PRSA? Or would they just exist separately?

Kind thanks

 

[Brendan Burgess]

While I am a great advocate of askaboutmoney over most financial advisors, this might be a case where a financial advisor with a good understanding of UK and Irish pensions - state, public service and private - might be useful.

Not sure where you would find one though as the type of person I am thinking of would be very expensive.

 

[Raskolnikov]

They can come from Jobseekers credits, voluntary contributions or 5k drawdowns from an ARF. Having an ARF is very beneficial for gaining extra Prsi contributions. This is another good reason to invest your 40k into a pension.

Could you explain the mechanics of this to me?

 

[ClubMan]

Could you explain the mechanics of this to me?

To be fair, @S class has explained this many times in many threads on the issue of the different ways to boost one's PRSI contributions reckonable for the OACP when not actually earning an income and paying (usually) class A PRSI.

 

[S class]

Could you explain the mechanics of this to me?

Click this link for more details

Key Post - PRSI and planning retirement

This Key Post is in the form of a FAQ where I don't know many of the answers. I will update the post as I get answers. 1. PRSI payable on reaching state pension age Answer: 0 (Class M) 1a. Does this relate to the start of the tax year in which you become 66? Or to after your birthday? Answer...

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