What is your net monthly income? If you're paying a mortgage maybe increase payments as much as you can to save on interest.
What about buying a place for yourself to live in then and leave the rental property as it is if it's paying for itself?
See here:What is the maximum tax-deductable level for the pension?
You can also backdate contributions against last year's earnings if applicable:Tax relief on contributions
You may get tax relief on contributions to approved personal pension arrangements. This relief is more generous as you get older.
Age Amount which qualifies for tax relief
Under 30 years 15% of net relevant earnings
30 to 39 years 20%
40 to 49 years 25%
50 to 54 years: 30%
55 to 59 years 35%
60 and over 40%
We have the house rented out for the last 4 years. I come out with €2670 after my pension & travelsaver expenses.
To be honest, I am looking down the road about 2/3 years. I want to buy my sister out or if she buys me out, I want to buy a house myself.
What is the maximum tax-deductable level for the pension?
Thanks
Are you fully tax compliant in relation to this property...i.e. did you pay stamp duty as appropriate, are you paying income tax etc?
Good work with the savings by the way!
just a word to say at 27 you are doing quite well - better than a lot of folks infact so don't feel like you must save so much or contribute to a pension. if i were you i would only be putting money in the pension if your employer was also contributing. I found myself that i only bothered with the penion when i had my house (in your case you are waiting until you are buying a house in its entirity) as i was saving for the deposit and not for a future years away.
just make sure that along with your house, €40k etc that you have and enjoy a life in the next 3/4 years. You only live once and all that.
It is an absolute no brainer that you should be puting the max 15% into a pension fund now,even if you have to cut back on your other savings
For you this will be paying 675 and you will be getting tax relief of 277 and your investment gains will be growing tax free.
There is never a right time to start a pension but unless you are in the public sector or are going to end up in a very high paying job you have to start a pension as early as you can.
If you are earning 60-70k and you are in your 40's and you are starting a pension it is too late to build up a good size fund
My company contributes 5% of salary!! Does this cut my 15% down to 10%??
What is the max the company can contribute?
Well done Onlooker with your savings.
Jaid
€2250 which is 5% of salary
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