Auto-Enrolment questions

D

dovetail

Registered User
Messages
66
Hello AAM,

I have some questions about Auto-Enrolment before it starts (I am trying to figure out the most favourable outcome to me based on my current employment situation: I am 46 years old. I work for a very small company and earning 70k pa. I am paying privately and directly to a Zurich PRSA by myself (not through my employer and no contributions from my employer). I max out the tax relief entitlement each year.

  • Based on my current situation, when the time comes, would I be better to opt out of auto-enrolment, and continue as I with my PRSA only?
  • Or could I maximise benefits by commencing auto-enrolment and also by continuing to pay into my PRSA going as it currently is?
  • If I commenced auto-enrolment and also keep paying into my PRSA, would my tax relief entitlement on the PRSA be reduced by the amount that the government will add to my auto-enrolment?
  • I decided to switch jobs in the future whereby I ended up in the 20% tax band, which system/product (AE or PRSA) would be more favourable in this case?
Thank you in advance for any advice or help with the information!
 
dovetail said:
Based on my current situation, when the time comes, would I be better to opt out of auto-enrolment, and continue as I with my PRSA only?
Click to expand...
You are missing your employer's top-up if you opt out. This is something you should discuss with your employer. I don't think your current arrangement exempts you from being auto-enrolled as your PRSA is not through payroll.

dovetail said:
Or could I maximise benefits by commencing auto-enrolment and also by continuing to pay into my PRSA going as it currently is?
Click to expand...
We can only guess at the answer to this one. It seems likely to begin with that you can have max tax relief with your PRSA and enjoy the 1 for 3 top-up with My Future Fund.
dovetail said:
If I commenced auto-enrolment and also keep paying into my PRSA, would my tax relief entitlement on the PRSA be reduced by the amount that the government will add to my auto-enrolment?
Click to expand...
As above.
dovetail said:
I decided to switch jobs in the future whereby I ended up in the 20% tax band, which system/product (AE or PRSA) would be more favourable in this case?
Click to expand...
Unquestionably you should be in MFF. Ex post investment returns will dominate but we cannot tell the future.
 
This is very helpful! Thank you Duke! I'll keep contributing to my PRSA and will contribute to the MFF as soon as its up and running to get the 1 for 3 top-up!
 
You must log in or register to reply here.
Back
Top