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.
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