Starting a Pension

T

teachnua

Registered User
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9
Hi Everyone

I am writing on behalf of my boyfriend who is employed as a brick layer. He is not paying into any pension scheme, therefore he is hoping to start up one soon rather than later! he is 28 on a salary of €36400 NET (after tax)..... I am working in the public sector, so am already paying into a pension - i am also hoping to start paying into AVC's.......

Can any one advise where is the best place to start? Rougly what would the payments be per month for him!

Thanks in advance for your help
 
Is the pension option open to him? I've seen it mentioned in other threads about constuction industry workers and their pension options but I know nothing about it and how suitable or otherwise it might be in any specific case.

Does he already own his own home? If not then perhaps he should concentrate on that before saving through a pension. Similarly is he on 41% or 20% tax? If the latter then the tax advantages of saving through a pension are much less than for high rate taxpayers.

Otherwise - maybe read the material here:

Best Buys - Pensions
www.pensionsboard.ie
www.itsyourmoney.ie
 
Unlike your Public Service pension scheme, whereby you will get a guaranteed pension at retirement, your boyfriend's pension will be based on how much money he has accumulated in his pension fund by the time he retires. There's no fixed rate of contribution.

At 28 years of age, he can claim tax relief on up to 15% of his Net Relevant Earnings. But he can choose to put in any amount up to this 15% limit. The more he puts in over the years, the nicer his retirement will be.

A good place to start would be the pensions section on the Financial Regulator's www.itsyourmoney.ie site. Then post back here if you have specific queries.
 
thanks for that - i will check out the various options listed - i have heard that the CIF Scheme its not worth evenin mentioning, i dont think he is paying into it - we are just in the process of building a house, so at the minute money is fairly tight as you can imagine!! but it is something that he will need to take into consideration in the very near future!! he his currently paying 41% tax.
 
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