I read on a somewhat less reliable message board the following and it got me thinking, so decided to ask it here.
Say someone is earning €50K and is aged 48, so the max they can contribute tax free to their pension pot is €10K.
If they have plenty of money and have lots of spare money every month.
Is there any sense in them Paying €20K into their pension pot so they now have €10k extra, but they wont get tax relief on it.
But it is now safely tucked away on their pension fund, growing tax free until they draw down. And can be taken out as part of tax free lump sum?
Basically the question came up of if it is wise for someone to contribute over the limit which you can get tax relief on, if you dont actually need the money and would probably be investing it elsewhere anyway?
Thanks
Say someone is earning €50K and is aged 48, so the max they can contribute tax free to their pension pot is €10K.
If they have plenty of money and have lots of spare money every month.
Is there any sense in them Paying €20K into their pension pot so they now have €10k extra, but they wont get tax relief on it.
But it is now safely tucked away on their pension fund, growing tax free until they draw down. And can be taken out as part of tax free lump sum?
Basically the question came up of if it is wise for someone to contribute over the limit which you can get tax relief on, if you dont actually need the money and would probably be investing it elsewhere anyway?
Thanks
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