Pension Contribution Tax Relief re 2015

vjoc

Registered User
Messages
51
Hi,

I would like to claim tax relief by making a lump sum pension contribution for the 2015 tax year, however I'm currently out of work and so am not a member of any pension scheme. My gross earnings for 2015 were €53,653 and I'm eligible to invest 25% (over 40), so I can invest €13,413 as far as I'm aware. Would anybody be able to advise the best investment option in such circumstances?

Thanks.
 
A PRSA...the cheaper the better, maybe execution only style into a Zurich or Irish Life international equity fund.
 
There is a huge range of different contracts and funds. PRSA with Zurich Life and Irish Life have a standard management fee 1%. There is cheaper in the market than that.

Fund wise, it depends what kind of return and investment risk you want to take. No point in telling you to go into global equities if a 10% fall will have you freaking out.


Steven
www.bluewaterfp.ie
 
There is a huge range of different contracts and funds. PRSA with Zurich Life and Irish Life have a standard management fee 1%. There is cheaper in the market than that.

Fund wise, it depends what kind of return and investment risk you want to take. No point in telling you to go into global equities if a 10% fall will have you freaking out.


Steven
www.bluewaterfp.ie

Sorry Steven once you have left the company pension scheme (OP unemployed) i thought you cannot do an avc in respect of that employment's earnings ....or do you mean he can do it if he was never in any scheme in previous employment?

Link below
[broken link removed]

Perhaps the point is more subtle than I understand and happy to be corrected
thks
mtk
 
You can use a personal pension plan.

An issue with PRSA's is that a product provider has to get them approved by the Pensions Authority first. This costs a lot of money and is very inflexible because they can't amend an existing contract without prior approval and paying fees. The charges under a personal pension plan is set by the life company, so they can alter the structure as they see fit. For contributions over €10,000, you can get cheaper than what a standard PRSA is offering.


Steven
www.bluewaterfp.ie
 
Thanks all.

Could anybody advise what is the difference between a PRSA and a personal pension plan & how does one set-up a personal pension plan?

Cheers.
 
In essence, they are both the same. The PRSA was promoted as the flexible, transportable pension plan but they are both savings plans for retirement. The fund choice is greater under a personal pension plan and the charging structures are different under both. The same tax relief is given under both.

Steven
www.bluewaterfp.ie
 
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