# Any point starting a pension at 60.



## Aurora (28 Aug 2017)

Would appreciate any help.Most of my income is from rental,but last year and this year have about 15000 as paye income.. Large tax bill looming in November and wondering if I should maximise tax savings by investing in pension... Who should I talk to? Which bank or Life company would give advice . Would commission and charges eat up any potential gains over a short period...


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## noproblem (28 Aug 2017)

Any bank or life company will give you advice on "THEIR" product. A good accountant/independent financial advisor is what you need.


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## Aurora (28 Aug 2017)

Thank you. Sadly I'm not sure where to find one of those.. My accountant did not offer any recommendations.


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## Steven Barrett (28 Aug 2017)

noproblem said:


> * A good accountant*/independent financial advisor is what you need.



An accountant isn't qualified to give advice on pensions. I have lost count of the amount of times that accountants have given clients incorrect advice on pensions. It can create uncomfortable situations when you have to correct them in front of their clients (no, you can't transfer your apartment into your pension ). 

Not sure if starting a pension at 60 will be that beneficial. You can make a contribution and mature it immediately. Due to the small amount, after the tax free lump sum, you can mature the rest as a trivial pension. You'll have to pay fees for setting up the pension and then maturing it. You'd probably be looking at saving about a grand (and same again in prelim). 


Steven
www.bluewaterfp.ie


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## Aurora (28 Aug 2017)

Thank you very much for your help... Might investigate it some more...Saving a couple of grand sounds good to me...Might start with my bank and see where to go from there....
Steven,,,, You are a gent....


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## moneymakeover (28 Aug 2017)

Op
Is the tax liability from rental income?
If so would that qualify for pension contribution tax relief? Or is it just paye income?


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## Steven Barrett (28 Aug 2017)

moneymakeover said:


> Op
> Is the tax liability from rental income?
> If so would that qualify for pension contribution tax relief? Or is it just paye income?



The OP said he had PAYE income last year, which would be pennsionable. The rental income won't be. 


Steven
www.bluewaterfp.ie


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## moneymakeover (28 Aug 2017)

How can he have large tax bill on 15000?


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## Steven Barrett (30 Aug 2017)

moneymakeover said:


> How can he have large tax bill on 15000?



Most of his income comes from rental. We don't know how much that is. If he's at the higher rate, half of that €15k goes in income tax etc



Steven 
www.bluewaterfp.ie


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## Gordon Gekko (30 Aug 2017)

Steven's advice is sound. The amounts (and therefore the savings) are small, but it's probably worth doing.

40% of €15k (i.e. €6k) can be put away.

The dilutitive effect of the tax-free lump sum tends to make late pension contributions worthwhile.


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## Aurora (30 Aug 2017)

Gordon Gekko said:


> Steven's advice is sound. The amounts (and therefore the savings) are small, but it's probably worth doing.
> 
> 40% of €15k (i.e. €6k) can be put away.
> 
> The dilutitive effect of the tax-free lump sum tends to make late pension contributions worthwhile.


Thank you for reply... I was 60 earlier this year so does that limit me to 35% for return due this year?
I have decided to go ahead with it so now it's a matter of which one? Too many choices.


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## Ravima (30 Aug 2017)

you get relief at the high rate. You pay tax on the pension at the high rate too, but if the high rate falls in the budget, then you make a small profit. As Gordon & Steven have said, get proper professional advice.


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## Aurora (1 Sep 2017)

Sorry.. I should have clarified my query.. Can I contribute 35% of earned income,or 40%..
Is it your age the year you earned the money or the year of contribution that matters?
Thank you all for your replies.


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## MrEarl (2 Sep 2017)

Hello Aurora,

You may find  this  to be of assistance to you.  The Pensions Authority website is actually very good, it is well worth taking a look around it if you can make a little time.

Someone else might confirm, but if you had taxable income from employment last year, you may also be able to make pension contributions in respect of last year's earnings and obtain tax relief (in addition to separately making pension contributions and getting tax relief against this year's earnings from employment).  Typically, you would be able to do this (up until a cut off point in October), but because you don't currently have a pension, I am not sure if you can avail of this benefit or not.

Also, you have asked earlier where you might find someone to help you with a pension.  May I suggest that you look at some of the contributors on this website ?  ...for a start, there is Steven Barrett (who has posted above) who might be able to assist.  Then there is also Liam D. Ferguson.  I have no connection with either party and no vested interested in suggesting either of them to you, but I am familiar with both of their reputations and believe that either individual might prove a lot more helpful then your local Bank (who will have a vested interest in selling you their own products, but little more).


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## Steven Barrett (5 Sep 2017)

Aurora said:


> Sorry.. I should have clarified my query.. Can I contribute 35% of earned income,or 40%..
> Is it your age the year you earned the money or the year of contribution that matters?
> Thank you all for your replies.



It's your age attained during that tax year, so if 59 was the oldest you were in 2016, it's 35%


Steven
www.bluewaterfp.ie

Thanks MrEarl


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