I was discussing this recently with a friend who was made redundant earlier this year and it was of interest to me as my spouse may be offered a redundancy later this year .
Basically they did not make any 2023 AVC’s to their pension and they reduced their 2024 contribution up until they were made redundant.
Their logic was reasonable as they have a mortgage, small kids, creche fee's etc so cash flow was their priority. However they have found a new role quite quickly and the redundancy was better than expected so they are now in a position where they can resume pension contributions comfortably.
They can no longer make a contribution to the scheme of their former employer but what we could not find a definitive answer to was can they use the tax relief for this period with their new employer or are there other ways of using this, e.g. a standalone pension product to contribute to??
My assumption is they can't use it in relation to the new employer scheme but I have no idea about other options available. I don't have exact figures but I am guessing they have €20-40k worth of contributions between 2023/2024 that they could have made but didn't.
Any help greatly appreciated!
Basically they did not make any 2023 AVC’s to their pension and they reduced their 2024 contribution up until they were made redundant.
Their logic was reasonable as they have a mortgage, small kids, creche fee's etc so cash flow was their priority. However they have found a new role quite quickly and the redundancy was better than expected so they are now in a position where they can resume pension contributions comfortably.
They can no longer make a contribution to the scheme of their former employer but what we could not find a definitive answer to was can they use the tax relief for this period with their new employer or are there other ways of using this, e.g. a standalone pension product to contribute to??
My assumption is they can't use it in relation to the new employer scheme but I have no idea about other options available. I don't have exact figures but I am guessing they have €20-40k worth of contributions between 2023/2024 that they could have made but didn't.
Any help greatly appreciated!