PRSA late starter

O

ohana

Guest
My husband is 63 and has no pension. He intends working for the next 7 years. Is it worth his while opening PRSA at this point, given entry/exit charges etc? He has a SSIA, some of which he could transfer into the PRSA. Any advice appreciated.
 
Chances are it could be especially if he is on 42% income tax now and may be on 20% or 0% at retirement. Don't forget the up to 25% tax free lump sum that can be taken at retirement as well. A low charges (e.g. 0% on each contribution and c. 1% annual management fee and no other charges other than, perhaps, a once off arrangement fee of a few hundred €) PRSA or personal pension plan (Retirement Annuity Contract/RAC) might be suitable. Given the timeframe to retirement consideration should be given to the most suitable/appropriate type of fund (e.g. possibly a medium risk/reward rather than anything with more volatility). The SSIA to PRSA transfer incentive is also certainly worth checking out if he and/or you qualify. If in doubt get independent, professional advice.
 
thanks for the advice Clubman...am going to look into this asap
 
I do not have a pension and am in my mid 50s I pay tax at 20% and was thinking of putting the 7500 into the government scheme and also to put some in each month and avail of the tax relief. I intend working for about 5 more years and hoped to contribute to the pension until 65. Is it possible that my husband could claim the tax relief on the pension payments as I will not be paying any tax after I finsih work. He took early retirement and is paying 20% also.
 
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