cutting penson ,paying mortgage

A

ant67

Guest
hi all ,im thinking of cutting my penson,what i put in every 4 weeks ,i normaly put in 100 pound with my company putting in the same,to 20 pound , then pay more off the mortgage ,as the rates are so low,is this a good idear.thanks for looking:)
 
If you are a high rate taxpayer, then every €100 that you put in gets you €41 in tax relief as well as Employee PRSI relief - say €6. On top of that your employer puts in another €100. So €200 into the pension costs you around €53 out of your take-home pay.

Put another way, if you want to pay €53 off your mortgage, you have to forfeit €200 into the pension.

Granted, there are charges and probably some investment risks involved with the pension and when you retire, some of your pension may or may not be taxed, depending on your tax position at the time.

Personally I wouldn't give up an employer matching pension contribution plus tax relief.
 
im not a high rate tax payer ,im on 24,000 a year as a baker
 
Okay your tax relief is lower - €200 into your pension is costing you around €74 from take-home pay.
 
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