Increase company pension or start own

C

coolaboola12

Registered User
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312
Hi All

I am 39 years old.

I currently put 5% of my salary towards my company run pension, they also contribute 5% and this is the max they will contribute

I want to ramp up my contributions to 15% of my salary and am wondering if its better to up my contributions to my company led scheme or put the contributions towards my own scheme

I want to invest in low cost index funds and not managed funds. All the employer pension plans are actively managed funds and i presume they have fees etc (i must check this out but im sure they have high fees)

1. Can i get the pension tax relief if i open a PRSA?
2. Will a PRSA allow me to purchase low cost etf's ?
3. Would the lower cost involved in purchasing low cost etf's be better than paying more into my company led pension plan which i presume has high fees?
4. Any other opinions on whats the best idea to do with my increased contributions ?

I also have a PPR on 2.75% APR which is 560 per month (108k left) and a house that is rented out for 950 PM (mortgage is 1100 per month, rate of 3.15% with 192k left on it)

Thanks for any help
 
Most providers have index funds in their fund options. Who it is with and I will tell you what they have.

You will still have to pay a management charge with another provider. Plus the cost of setting up a new policy.


Steven
www.bluewaterfp.ie
 
Its with IRish Life but there are only certain funds available. There is 7 funds listed in the switch funds page.
 
Irish Life have index funds but have their own benchmarks and not the commonly used ones. The trustees may have limited the number of funds available.

If you set up your own PRSA AVC plan, you can expect a management charge of 1%.

Remember, to invest in a low cost ETF, you have to use a platform or provider who will charge you to do so. The low ETF fee is on top of this. To access through a pension, it'll be 1%. Not many PRSA's that charge less.


Steven
www.bluewaterfp.ie
 
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