Pension Advice

R

Radwanska

Guest
Just out of college and after recently starting a new job. Earning €29,000 a year with the employer currently contributing 5% of my salary a year to a pension. I am under no obligation to add to the employers contribution. After tax and other expenditures, I'll be earning gross pay of €25,250.

I'm considering putting an extra €100 a month AVC into my pension in the belief that I'll be able to reduce my tax payments. Is this worthwhile at this stage in my career? To be honest, I'm a bit clueless about pensions, so any advice on how to best proceed would be great.
 
If you plan to buy a home of your own at some point in the future then it may be better to prioritise saving for that over pension savings right now. However this is a subjective opinion. You can see more about it in the AAM guide to savings & investments linked from the Savings & Investments key posts along with other useful stuff like the IFSRA guide to savings and investments. The key posts in this forum are also worth reading.
 
To confirm my understanding of things.

If I earn up to €17,600, I pay no income tax.

If I earn €18,800, I'll then get taxed on the extra €1,200 @ 20%, right?

Assume the above is true, could I then say put away €100 for each of the 12 months in the year and then not pay income tax of 20%?
 
I'm currently have €10k in the bank and would expect to be saving another €10k every year, so after 5 years when I expect to buy, i should have €60k or so for a deposit on the house. Is this a reasonable deposit for a €350k type place? I'll also be able to put away a bit into a pension in the mean time
 
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