Join PRSA now or wait for AE?

[Chewbacca]

Been back in Ireland a couple of years after a long time in UK, presently employed not making pension contributions (age 51, salary €80k) have various UK pensions. Employer has a PRSA but does not make any contributions. Not too auf fait with Irish pensions. If I joined the company one is the pension provider defined e.g. Irish Life etc or do I still need to find my own?
Given the company makes no contribution am I better to source my own pension provider or do I need to use the one in the company PRSA. Are there threads on here recommending one pension provider versus another. I believe I can also back date contributions to 2020 provided I do so before October of this year.
I may or may not stay with this employer and given the forthcoming AE am I better to wait for AE, if I started this could I transfer it into an AE scheme later and would there be large charges if that was possible?

 

[Steven Barrett]

AE is expected to start in 2024...that's if they have everything in place. And when it does start, it will be a total of 3% of your salary into a pension. Not very much. And at the moment, there is no option to make AVCs.
Better to get started now.


Steven
http://www.bluewaterfp.ie (www.bluewaterfp.ie)

 

[Brendan Burgess]

Agreed. Get going now.

And if you are on the top tax rate, you might be better off in a PRSA than in the AE system - assuming your employer contributes to it.

Brendan

 

[GSheehy]

The employer is only obliged to provide access to one PRSA provider for salary deduction. Employees can ask them to add another provider.

As the company don't contribute, you could source your own PRSA outside of the employer, pay for it from your own bank account and claim the tax relief via Revenue 'My Account'.

Gerard

www.prsa.ie

 

[NoRegretsCoyote]

AE is expected to start in 2024...that's if they have everything in place.

I agree 2024 is very unlikely given how long policy takes to implement and the administrative complexity of setting it up.

I would very much doubt that they'll keep to this schedule. I would not bet on it coming into force until 2025 or 2026.

 

[Dave Vanian]

I believe I can also back date contributions to 2020 provided I do so before October of this year.

That should read 2021.

if I started this could I transfer it into an AE scheme later and would there be large charges if that was possible?

There's nothing in the current details of the AE scheme that will permit you to transfer a fund from another pension scheme into the AE scheme. They might or might not allow this when the AE scheme is fully designed and up and running.

 

[ashambles]

I think it's a 10 year phase in period, the idea being that companies need time to work up from 0% to 6%.

If you're 51 now, and a top rate tax payer, you're not the target of the AE proposal. There's a good chance you'll be 65 before the scheme is fully running.