Restart Pension

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aidank

Registered User
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Age 45 male – another good long while to go before retirement.

I have been making AVCs for the last 20 years across the 3 multinationals I used to work for. The AVCs were paid to the multinationals preferred AVC company. They have done well as they were invested in the risk 5 and 6 category.

I left my DB pension and AVC in each company according as I ceased employment.

My current employer doesn’t pay any pension, thus the only pension I am currently paying is the My Future Fund state sponsored scheme.

I want to start paying AVCs again. Should I go with Zurich or Irish Life or someone else is there much of a muchness.

Im also wondering what should i look for when picking a fund other than the risk profile.

End of October is coming so I need to get this sorted out.
 
aidank said:
I want to start paying AVCs again. Should I go with Zurich or Irish Life or someone else is there much of a muchness.
Click to expand...
Have a look at this thread.

Probably the best (cheapest) PRSA in the world?

The launch of Royal London Ireland's new pension product in late November 2024 seems to have finally offered customers accessible, lost-cost PRSAs. Through an execution-only broker, it is relatively easy to access a passive fund AMC of 0.55% or significantly lower on larger transfers. Taking...
www.askaboutmoney.com
aidank said:
Im also wondering what should i look for when picking a fund other than the risk profile.
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In my opinion pick the cheapest passive diversified equity index tracker e.g. one that tracks MSCI World Index or similar.

You should also review your previous pensions to ensure that the charges aren't higher than necessary and the asset allocation is appropriate (most likely all equity at your age) in case moving them might be beneficial.
 
Technically, your extra contributions won't be AVCs, since you're not in an occupational pension scheme. So if you're getting a PRSA, make sure NOT to get an AVC PRSA.

From what I can tell, you can claim tax relief on your PRSA contributions up to the usual age-related limits. The fact that you are getting the government contribution into the My Future Fund scheme does not reduce your limits for tax relief on PRSA contributions.
 
Persius is correct here. You need a PRSA (not an AVC). You can take one out personally and pay from your own bank account and then claim the tax relief (tax credits adjusted) by logging the PRSA payments on MyAccount. Even with My Future Fund in place the employer must offer you the opportunity to pay into a PRSA through salary deduction (getting tax relief at source).

None of the contributions to My Future Fund are counted towards your personal age related limits so 25% available to you up to the cap of €115,000 in earnings.

You mention October, so if planning to backdate to 2025 were you in the same situation pension wise in 2025 - in non pensionable employment. If were still in one of the previous jobs with a pension scheme and AVC in place for 2025 you can't now backdate a PRSA contribution to that pensionable employment period.

www.shefflinoneill.ie
 
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