Additional Pension Contributions

W

Walshe

Guest
Quick question -
I currently have a defined benefit pension (currently as we are in the propose of a take over and the new company only operates defined contribution).
I am only 5 years in the scheme and am 31
I have a 3 bonus payments in the next few months (gross : €1.5k €9k €9k)
  • Is it worth putting additional payments into my pension at such an early stage?
  • What would be the most 'efficient' amount to put in?
Obviously I know an answer isn't binding and I plan to and get advice but a decision has to be made on the smaller amount by tomorrow as it is the liquidation of a share tracker scheme.
Any advise?????
Thanks
 
i would leave it into the pension if i were you
9K bonus - 42% tax versus putting it into the pension and seeing it worth more than it due to government tax incentive for pension scheme investment.
 
Given your age you are capped at 20% of NRE (net relevant earnings, basically gross annual salary) so this is your upper limit on which you will get tax relief (PAYE\PRSI) on contributions.

Again advice is hard to give not knowing your full circumstances, if you do not own your home or have a large amount of debt, this would be my priority for the money, bearing in mind that you probably won't see your pension until you're 60+.
 
Hi Walshe,

I know this is not the question you asked but..

when you say you are in a DB scheme and that your company is in the process of being taken over by a company that doesnt operate a DB scheme..it is not clear to me what pension arrangements you have going forward.

Will the new company continue to operate the old DB shcheme? (as it is obliged to do under the Transfer of Undertakings Protection of Employees regulations) Or has the the new company negotiated mutually acceptable new pension arrangements with the employees and their representatives?


aj
 
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