I'm looking at pension payments at the moment from my limited company. We have executive pensions set up for both directors, myself and my partner and I am wondering if the amounts we are paying into them are too high. Obviously the reasoning for doing this is minimising the tax bill but even looking at the figures if I was to keep contributing at this rate, by the time I am 60, there is a lot of money in their alright but due to inflation it has essentially halved in buying power. So, essentially I am putting in 24k a year and my partner 12k, both being separate pensions. I have moved over 25k from a previous employer so I am up to about the 40k mark at present (I have not completed my first year self-employed). Out contributions amount to about the 18% of company turnover.
I am 30 and I am Irish. My partner is 33 and is Spanish. We are moving out to Spain next year though I plan to continue to operate out of the Irish company for as long as is humanly possible.
What are peoples thoughts on this level of contribution. Is it excessive. Is there something better that I could be doing. I dont believe there is given I am making a 46% return instantly although I cannot touch it until I am 60.
Also, if I spend the next say 20 years in Spain, or in fact, 30 years to retirement, how is my state penion impacted here in this country. If I am operating through the Irish company, I will at some stage soon become non-resident in Ireland for tax purposes and hence should start declaring tax to the Spanish revenue. How does this affect state pension stuff here?
Thanks in advance.
I am 30 and I am Irish. My partner is 33 and is Spanish. We are moving out to Spain next year though I plan to continue to operate out of the Irish company for as long as is humanly possible.
What are peoples thoughts on this level of contribution. Is it excessive. Is there something better that I could be doing. I dont believe there is given I am making a 46% return instantly although I cannot touch it until I am 60.
Also, if I spend the next say 20 years in Spain, or in fact, 30 years to retirement, how is my state penion impacted here in this country. If I am operating through the Irish company, I will at some stage soon become non-resident in Ireland for tax purposes and hence should start declaring tax to the Spanish revenue. How does this affect state pension stuff here?
Thanks in advance.