Permissible contributions

[Loki1974]

My wife is a lower rate tax payer and does not have an occupational pension . Her employers would only contribute €700 a year towards a pension if she were to take one out . Was considering holding off on taking one out so that she will be eligible for auto enrolment . But just reading now , she could only make contributions of 1.5 % for the first 3 years , which is useless if she is going to try growing some what if a pension commencing at 41. Are you not able to decide how much you want to invest yourself whilst accepting that government and employer contributions will be restricted to the applicable percentages of salary . How are you expected to be able to grow a pension when you can only invest 1.5 percent of salary . See response below which is on the Gov , frequently asked question page .

Can I make additional contributions?​

There are no plans currently to allow you to make additional contributions, but this may be an option in a few years' time.

 

[misemoi]

Could she set up a PRSA as well?

 

[Steven Barrett]

She should take the employer contribution while it is on offer.

It is still unclear but it looks like a PRSA AVC will have to be set up for any AVC payments.

It will be years/ decades before the auto enrollment. The Australian model which has been around since the 80's, is an 11% contribution, rising to 12% next year. It will be impossible to start at that level, employers wouldn't agree to it.

 

[Loki1974]

She should take the employer contribution while it is on offer.

It is still unclear but it looks like a PRSA AVC will have to be set up for any AVC payments.

It will be years/ decades before the auto enrollment. The Australian model which has been around since the 80's, is an 11% contribution, rising to 12% next year. It will be impossible to start at that level, employers wouldn't agree to it.

Thanks Stephen , so you are saying don’t hold your breath believing it will commence by September 2024 .

 

[Roro999]

She should take the employer contribution while it is on offer.

It is still unclear but it looks like a PRSA AVC will have to be set up for any AVC payments.

It will be years/ decades before the auto enrollment. The Australian model which has been around since the 80's, is an 11% contribution, rising to 12% next year. It will be impossible to start at that level, employers wouldn't agree to it.

Auto Enrollment rolled out by the end of the year according to Heather Humphies on radio this week. Now believe that.

 

[Steven Barrett]

Thanks Stephen , so you are saying don’t hold your breath believing it will commence by September 2024 .

apologies, a bit missing from my sentence. It'll be decades before it gets to any decent level of contribution to make it meaningful level. 1.5% of salary will never provide a decent pension. But we have to start somewhere. The other option is not doing anything at all.

Auto Enrollment rolled out by the end of the year according to Heather Humphies on radio this week. Now believe that.

I don't know how far along they are in the IT infrastructure to manage this thing but as you can imagine, this will be a massive project that will cost tens of millions to implement. The providers haven't been selected yet and @Colm Fagan has his own funding proposal that is being considered.