Limited company IT contractor - PRSA or company scheme?

[joeuser]

I'm an IT contractor, mid-30s, with his own limited company, who needs to understand the pros and cons of a company pension scheme versus a PRSA.

I'm a bit lost and would welcome any pointers on the following:

- Implications for reducing corporation tax (company scheme vs. PRSA)
- Ease of cashing in/minimum ages at which pension may be taken (and how - lump sum, etc.) e.g. retiring early (yeah right!)
- Portability - given that I don't expect to spend more than a few years as an IT contractor (most people in this racket drift back into PAYE, it seems to me)
- I understand company schemes allow larger tax relief contributions, but given that I expect to make a max of 50kpa, and have a mortgage to pay, should this be a major consideration for me?

I realise the above is all vague, really just looking for comment and rough pointers at this stage. All suggestions appreciated, thanks.

Joseph

 

[capall]

The advantage of a company pension scheme is that the company can contribute to it as much as they want. With a PRSA you are limited to the max % contributions per your age bracket

Also if you want you can actually control the investments a company pension makes.

However if your company is only earning 50k ,then just go personal PRSA route ,probably simpler

 

[joeuser]

Thank you capall for the feedback. I think a PRSA's flexibility is the best thing at this stage.