As per title really, I'm new to this website but I've had a little browse around this forum and find it's topics interesting and there seems to be good knowledge posted by various users.
I'm looking to start a pension, (if not too late) I'm late 30's. I know I'm late to the party and it's a bit scary when I read of other posters with massive wages and massive pension pots. My main reason for starting a pension is because I'm a good saver getting practically 0% interest rate (as are many folk) and understand there is good tax relief on them and also I'm partially concerned there may well be no state pension by the time I'm of retirement. I'd probably be of the low to medium risk type, maybe some high risk at the start to make up some time.
I'd appreciate a recommendation on what pension I should consider and here are some details that might help such recommendation to be made: (if more info needed please ask)
Some details:
Gross wages about 30k, no mortgage and won't require one, no company pension in place and working on basis employer won't be contributing, I'd like one that I can contribute lump sums into or at least at the start as I'm starting so late to make up for lost time, would like the option of withdrawing at 50 as opposed to 65/66 etc. I'm not planning on early retirement but I like the flexibility of being able to take the money or some of it when I want or if some opportunity presents. I won't need the money in the short term, not before 50 anyway. Currently saving approx €1200 p/month. I have no existing debt / loans.
I think I'd like the flexibility to be able to alter the regular monthly contributions as and when I please rather than to be tied to whatever original amount is paid.
From searching and reading this forum, I believe the employer compulsory pension facility is the best option to set-up, although I think I read that these can't be withdrawn at 50 and only at the later 65/66, is this correct? Also, I read something that you can't withdraw at 50 if still working for the same employer the pension is set-up with? If this is the case, am I better off with an alternative Personal pension? Am I correct in thinking a PRSA is pension through the employer compulsory facility and a personal pension is an independent one you obtain yourself. Are both paid at gross, or would your personal one be paid into via your Net pay? Regards the ones you can withdraw from 50yrs on, are you penalised for doing so then even though they allow it? Do you pay tax on this withdrawal? Is the tax relief gained when you pay in cancelled out by the tax you pay on the way out?
I suppose the big question (after selecting a pension product obviously) then is how much to pay in each wk / month, do I pay in the max I can benefit from the relief? And how much of a lump should I initially pay in, willing to pay in 50K in an original lump, I'd still have some savings for a rainy day if I did this.
With no mortgage and no need for one in the future, is a pension the most obvious means of saving / investing ones money? From reading the forum, the general advice seems to go in the order of mortgage first, then max pension contributions and then alternative investments such as shares / bonds, state savings, etc...
Sorry for long post, wanted to provide as much info for accurate advice, Thanks in advance.
I'm looking to start a pension, (if not too late) I'm late 30's. I know I'm late to the party and it's a bit scary when I read of other posters with massive wages and massive pension pots. My main reason for starting a pension is because I'm a good saver getting practically 0% interest rate (as are many folk) and understand there is good tax relief on them and also I'm partially concerned there may well be no state pension by the time I'm of retirement. I'd probably be of the low to medium risk type, maybe some high risk at the start to make up some time.
I'd appreciate a recommendation on what pension I should consider and here are some details that might help such recommendation to be made: (if more info needed please ask)
Some details:
Gross wages about 30k, no mortgage and won't require one, no company pension in place and working on basis employer won't be contributing, I'd like one that I can contribute lump sums into or at least at the start as I'm starting so late to make up for lost time, would like the option of withdrawing at 50 as opposed to 65/66 etc. I'm not planning on early retirement but I like the flexibility of being able to take the money or some of it when I want or if some opportunity presents. I won't need the money in the short term, not before 50 anyway. Currently saving approx €1200 p/month. I have no existing debt / loans.
I think I'd like the flexibility to be able to alter the regular monthly contributions as and when I please rather than to be tied to whatever original amount is paid.
From searching and reading this forum, I believe the employer compulsory pension facility is the best option to set-up, although I think I read that these can't be withdrawn at 50 and only at the later 65/66, is this correct? Also, I read something that you can't withdraw at 50 if still working for the same employer the pension is set-up with? If this is the case, am I better off with an alternative Personal pension? Am I correct in thinking a PRSA is pension through the employer compulsory facility and a personal pension is an independent one you obtain yourself. Are both paid at gross, or would your personal one be paid into via your Net pay? Regards the ones you can withdraw from 50yrs on, are you penalised for doing so then even though they allow it? Do you pay tax on this withdrawal? Is the tax relief gained when you pay in cancelled out by the tax you pay on the way out?
I suppose the big question (after selecting a pension product obviously) then is how much to pay in each wk / month, do I pay in the max I can benefit from the relief? And how much of a lump should I initially pay in, willing to pay in 50K in an original lump, I'd still have some savings for a rainy day if I did this.
With no mortgage and no need for one in the future, is a pension the most obvious means of saving / investing ones money? From reading the forum, the general advice seems to go in the order of mortgage first, then max pension contributions and then alternative investments such as shares / bonds, state savings, etc...
Sorry for long post, wanted to provide as much info for accurate advice, Thanks in advance.
