Company pension V Private PRSA

D

Dweller$

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Hi I have a pension at work where I pay 5%, company pays 10%. Should I pay more AVC or setup private PRSA with financial advisor?
Thanks.
 
Depends on charges such as AMC but I suspect your employers pension scheme (if a master trust) will have significantly lower charges than a PRSA so probably your best bet is AVCs.
 
Flybytheseat said:
Depends on charges such as AMC but I suspect your employers pension scheme (if a master trust) will have significantly lower charges than a PRSA so probably your best bet is AVCs.
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Thanks for reply, am I right in thinking the tax break is same for both?
 
Dweller$ said:
Hi I have a pension at work where I pay 5%, company pays 10%. Should I pay more AVC or setup private PRSA with financial advisor?
Thanks.
Click to expand...
One advantage of paying the extra contributions into an AVC PRSA is that your employer will have no knowledge that you are making these payments.

It could be to your advantage in the future if you are seeking a cost of living wage increase, that your employer has no insight into your financial situation.
 
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S class said:
It could be to your advantage in the future if you are seeking a cost of living wage increase, that your employer has no insight into your financial situation.
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I've never heard of this and doubt it would be legal for employer to use as justification. Also they kind of know what they are paying you!!

The advantage of paying AVC directly into your employers pension scheme is that you automatically get the tax break in your pay packet. If you do your own PRSA you will have to file a tax return to claim the tax back.

But I agree with theseat, the fees should be your determining factor.
 
It's not a case of legality.
Any employer who is asked by an employee for an unscheduled extra pay increase is free to judge whether they wish to grant the increase or not.
If the employer is aware that the employee can afford to make extra large pension contributions, this could be a factor which would make the employer less inclined to agree to the wage increase.
Tax relief can be applied at every pay period from a prsa in the same way as happens from AVCs.
This is easily set up from revenues myaccount.
 
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