This year, like every year I can, I have put my annual bonus into my pension. I understand the tax advantages of doing this, but I did have the choice of taking cash (which would have got a tasty income tax haircut naturally). I understand that I'm saving for my future. But for this month, I have to take a pay cut (PRSI/USC on bonus).
I will do the same next year if I can. But if I was someone who needed every penny of my paycheck every month, investing a bonus in my pension would not be possible. Shouldn't we be encouraging people to use these lump sums to invest in their future rather than immediately penalizing them?
I will do the same next year if I can. But if I was someone who needed every penny of my paycheck every month, investing a bonus in my pension would not be possible. Shouldn't we be encouraging people to use these lump sums to invest in their future rather than immediately penalizing them?