That's incorrect.Assuming you are age 60 you will get 40% tax relief on your contributions.
Is €400 the max that the employer will match?Thank you so very much . No more info . My hubby's 62 and we thought this was maybe worth it . Looks like it is
Apologies I’m mixing up two different elements but in reality my sums may still be correct depending on the income.That's incorrect.
At age 60+ they can contribute up to 40% of gross income into the pension and get full tax relief on it.
What rate that relief is at depends on their income.
Tax relief on pensions
You can get income tax relief on your pension contributions. You can also get tax relief on a lump sum pension payment when you retire.www.citizensinformation.ie
I'm not sure I'll find outIs €400 the max that the employer will match?
Almost certainly it's worth contributing the maximum amount that the employer will match assuming that it can be spared.I'm not sure I'll find out
20% or 25% TFLS?Almost certainly it's worth contributing the maximum amount that the employer will match assuming that it can be spared.
It's also worth checking what options there are for what sort of fund/assets the pension can be invested in especially if the plan is to access the funds in 5 years.
At that stage there would usually be the option of a tax free lump sum of 20% of fund (subject to a maximum of €200k) and then rolling the balance into an ARF or buying an annuity with it.
But some of the details may depend on the nature of the scheme.
Benefits payable on retirement - pensionsauthority
On retirement from a private pension arrangement you will have a number of options available to you. The decisions you take at this point will have a significant bearing on your financial security and that of your dependants. You should consider taking advice when deciding upon your retirement...www.pensionsauthority.ie
25%, but if the fund is less than 150% of Final Salary and you have at least 20 years service with that Employer, you might be able to take the total fund tax-free. A great deal.20% or 25% TFLS?
My mistake (now corrected in my post) - thanks for pointing it out!20% or 25% TFLS?
It's probably a no-brainer already but that would certainly seal the deal!25
25%, but if the fund is less than 150% of Final Salary and you have at least 20 years service with that Employer, you might be able to take the total fund tax-free. A great deal.