Hi,
I am employed and pay prsi but do not have any prsa. As well as my wages I have rental income and my liability is €3500 to be paid by Nov 15th. My accountant says I should consider a deposit pension as my income is 34,000 that I could contribute 9,000 euro and that my 3,500 would go against this. This means that I must have 5,500 to pay in. I do try to contribute 300 to AIB on line savings .
We are jointly assesed and I am paying tax at 41%. I know if I contribute I will not have access to the pension until 60 and if I did not do it I just pay the 3,500 libility and if I can keep saving my 300- 400 monthly I have access any time I wanted.
What pitfalls do I need to watch out for ? If I pay it this year and cant afford it next year what happens? Can you decide to pay different amounts every year? If I die having paid in for 5 years will it go to my family ? When you are 60 do you get a lump sum or a montly payment.
Should I go direct to a company or what ?
Any other advice. We do have a property which is currently rented out for 1,600 monthly so that is the income I had hoped to have but this would be an extra. The only fear I have is that I might need the money and wont be able to withdraw ?
I am employed and pay prsi but do not have any prsa. As well as my wages I have rental income and my liability is €3500 to be paid by Nov 15th. My accountant says I should consider a deposit pension as my income is 34,000 that I could contribute 9,000 euro and that my 3,500 would go against this. This means that I must have 5,500 to pay in. I do try to contribute 300 to AIB on line savings .
We are jointly assesed and I am paying tax at 41%. I know if I contribute I will not have access to the pension until 60 and if I did not do it I just pay the 3,500 libility and if I can keep saving my 300- 400 monthly I have access any time I wanted.
What pitfalls do I need to watch out for ? If I pay it this year and cant afford it next year what happens? Can you decide to pay different amounts every year? If I die having paid in for 5 years will it go to my family ? When you are 60 do you get a lump sum or a montly payment.
Should I go direct to a company or what ?
Any other advice. We do have a property which is currently rented out for 1,600 monthly so that is the income I had hoped to have but this would be an extra. The only fear I have is that I might need the money and wont be able to withdraw ?