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[FONT="][/FONT]A relation of mine is 50 years old and joined the public service in 2003. He currently pays around 6.5% of his gross salary into the public service pension scheme.
He also has a PRSA which he started around the same time to supplement the public service pension and into which he contributes the maximum amount allowable for tax relief.
With the new pension levy, he estimates that he will have to pay an extra 8.8% of his salary into the public service salary, making a total of 15.3% of his gross salary going to his public service pension. To make sure that all contributions are tax efficient, He is considering reducing his PRSA contributions to 14.7% of his salary to maintain the total pension contribution allowance of 30% of his salary. Does this make sense for him?[FONT="][/FONT]
He also has a PRSA which he started around the same time to supplement the public service pension and into which he contributes the maximum amount allowable for tax relief.
With the new pension levy, he estimates that he will have to pay an extra 8.8% of his salary into the public service salary, making a total of 15.3% of his gross salary going to his public service pension. To make sure that all contributions are tax efficient, He is considering reducing his PRSA contributions to 14.7% of his salary to maintain the total pension contribution allowance of 30% of his salary. Does this make sense for him?[FONT="][/FONT]
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