Housewife + pension

M

maura

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I was just wondering if a full time housewife can get a pension on her own. Would this be a prsa?
 
Maura,
Yes you can effect a PRSA, but if you have no income than you cannot claim tax relief. And if you cannot claim tax relief it makes no sense, as you will be taxed on any income you ultimately draw down at retirement.
If you cannot get tax relief you would be better off investing into a non-pension savings type product where you will only pay 23% exit tax on the growth.
 
Thankyou F.Kruger and Conan for your helpful advice. I guess that rules that one out.
 
Conan,

Will Maura be taxed on any income she draws down, irrespective of what her fund is worth and when she decides to take it?

Is there any advantage to her saving in a fund that will not have the exit tax?

If Maura was separated could she pay for the PRSA out of any payments she was getting from her ex and claim tax relief on the contributions?
 
After taking the 25% tax-free lump sum , the balance must be used to buy an annuity of invested in an ARF. Any income coming out of such will be taxed at appropriate rate.
Therefore if she is not getting tax-relief on contributions it is pointless investing in a contract where she will pay tax on income (original contributions + growth) as opposed to investing in a contract where she will only pat tax (exit tax) on growth.
Finally tax relief is only available on contributions coming from earned income. I dont think that maintenance payments count.
 
Thanks lads for your trouble, hopefully won't separate, but useful information.
 
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