Pension contributions over the tax relief limits?

[coolaboola12]

Im 45 with 240k in pension and contributing 25% every month to my pension

I have more disposable cash so is it worth increasing the contributions more ?

 

[ClubMan]

Key Post - Contributing to DC pension in excess of tax relief limit

Hi, I have excess funds that I would like to invest in shares (I have a rainy day fund in place, tracker mortgage 20yrs/ €300k that I overpay each month and a mortgage free investment property) my DC pension is 650k and 80% equities with Zurich and blackrock. I am 45 with no dependents and...

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As ever it's difficult to answer such a question on isolation without a wider understanding of your overall financial/personal circumstances such as a Money Makeover would outline.

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It can be difficult, but please try to use a meaningful title in your thread For example "27 year old with mortgage arrears". You will get a much better and much more coherent answer if you give as much information as possible in your first post. For example, if you give your mortgage rate, it...

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[Fortune]

I have more disposable cash so is it worth increasing the contributions more ?

Well, you're taking taxed income and subjecting it to a second tax deduction by putting it in the pension.

Having said that, it does depend on whether you are able to spread that overpayment forward into years where you aren't exceeding the limit and get tax relief on those years

 

[conor_mc]

Having said that, it does depend on whether you are able to spread that overpayment forward into years where you aren't exceeding the limit and get tax relief on those years

Most important point to note here - while you can carry this forward and reclaim tax in future years, you can only do it if in the same scheme/employment. So if in an occupational scheme, you lose the carry-forward as soon as you leave your current employer.

 

[ClubMan]

If one uses a PRSA or other personal/private pension scheme (e.g. Retirement Annuity Contract) across different employments can the carry forward be used in that case?