Redundancy and Pension

[Mark_jmc]

Hi All,
Can someone advise me the best way to use a redundacy payment/severance package to increase penion entitlement/reduce tax liability,
Any info would be much appreciated,
Thanks,
Mark

 

[aidan119]

what age are you ?
how close are you to retirement?
is there a company pension scheme, if so what type.

 

[Mark_jmc]

Hi ,
Its a hypothetical situation- i'm doing a part-time masters in hr and as part of the course we have live recorded negotiations. The current negotiation involves a credit union manager looking to negotiate a severance package. She is 58- first time redundancy, little/no pension. I am looking at the most tax effective way of getting this money. It is estimated that she will receive 45-55K.
Any help is much appreciated, Thanks

 

[hoopman]

mark
i got redundancy after 15 yrs work for same employer (43yrs old at time)
i got 5.333 weeks per year instaed of the 2 weeks statuary.
The statuary part is tax free and then there are two other ways of working out which way its taxed.
As i was not in a pension scheme I went for the superannuation way which basicly ment i only paid around €1,500 tax out of a payment of €63,000. But as far as I know it will effect any other lump sum I may receive from pebsion payments in the future.