Have a company pension, Can i start an independent private one too?

greenbridge

New Member
Messages
3
Hi

Longtime observor of ask about money, some great advice here

I have a company pension that I pay 5% of my income and my company matches this. I am over 50 and would like to maximise my contributions for tax reasons ( higher rate taxpayer) and to start pumping more in.

my question is do I have to put my extra contributions into the company pension or can I set up a separate private pension with more competitive charges etc? I am aware I will have to do a yearly return to avail of the tax relief ( I do this anyway as I recently had a rental property )

My spouse does not have a pension, she is mid forties and never started a private pension and is keen to start one now. Her workplace does not provide a pension or match any contributions so she would have to set this up herself.. can I check if we do get one set up soon, can she put in a full contribution for the year 2021 as her opening payment? and start monthly payments going forward.

can we set this up ourselves or are we better going for professional advice?
 

bstop

Registered User
Messages
426
You can set up a PRSA to provide a private pension. If your company pension is defined benefit you will need to set up an AVC PRSA.
If you want the most competitive charges set up your PRSA through an execution only broker. You will need to know what funds you want to invest in as the broker cannot give advice. I would recommend Gerard Sheehy at prsa.ie to set up an execution only PRSA.
Your wife can set up a PRSA and claim for 2021 earnings provided that she invests before 31 October 2022. She can also claim for her full years earnings for 2022.
If you are confident enough to choose your own level of risk you do not need professional advice.
Start by getting PRSA brochures from a provider e.g. Zurich Life and select what fund suits your risk level and then contact an execution only broker.
 

Steven Barrett

Registered User
Messages
4,649
Any additional contributions has to go into a PRSA AVC plan. As the charges are set by legislation, you may not get cheaper than your work scheme.

Yes, your wife can set up a pension and make contribution of up to 25% of her 2021 income and claim tax relief in respect of that year and also monthly contributions.

DIY or professional advice? Like with everything, it depends on your level of competency and knowledge. I couldn't change a plug so am always quite happy to pay someone to do stuff for us. That way I know it is done right. Others are quite happy to do things themselves.



Steven
www.bluewaterfp.ie
 

greenbridge

New Member
Messages
3
thank you for your replies
I have a uk pension ( deferred since I left the uk ) that is defined benefit. WIth my current company in Ireland it is contribution prsa. It is with irish life and is with irish life and " self managed" I have two funds in global and worldwide both high risk. So i suppose though it is self managed I font really know what to do with it. I do have funds to top up to avail of the tax benefits for last year both was wondering if i should start up a different private prsa as they may have better charges then my work one. The benefit of the work one is company contribution and that is max 5% so no incentive to put further funds in there if there are more competitive ones out there.

as we need to set up something for my spouse anyway thats where my thinking was to put my extra funds into a new one.

thanks for your replies and Steven you raise a good point and I have requested help on the recommendations page asking for recommendations for help as I think we do need it. My knowledge is limited

thanks again
 
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