PRSA - pension for full time student

T

triona

Registered User
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Hi,

My husband and I are in our early thirties. I have a PRSA to which I have made monthly contributions for the last 4 years plus a defined benefit pension from a previous job. My husband (for various reasons) hasn't made many contributions to a pension scheme. He was self-employed and made some contributions to a scheme but overall very little. He has now gone bck to college full time and is on a scholarship. He will be in college for 3 years.

Can I make additional contributions to my PRSA to provide a pension for him or is a PRSA only for an individual? When he's finished college he should (fingers crossed) have a good career and income which will allow him to make contributions to his own pension.

We are just concerned that he needs to start making contributions to a pension as soon as possible.

Thanks for your help, Triona
 
Your husband could if he wanted make contributions to a PRSA but would not get the tax relief as he does not have any income. "A PRSA is an investment vehicle used for long term retirement provision by employees, self-employed, homemakers, carers, unemployed and any other category of person"

You could fund your own pension contributions up to your max threshold which depends on your age. For example if you are aged between 30 and 39 you could contribute up to 20% of your net relevant earnings.

Hope this helps

Paddy
www.SmartQuotes.ie
Online Discount Financial Services and Insurance
 
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