In theory you have 42k here already (20k Zurich, 19k Bonds and 3k credit union). All are accessible relatively quickly.I also think you need to maintain a bigger accessible cash reserve to address any unbudgeted expenses that might arise
2. You are 50 years old. If you set up a personal pension e.g. PRSA (independent of your company pension scheme) you can invest 1000 a month into it (costing you 500 euro a month net). You then are allowed to grow these funds tax free for 10 years until you are 60, when you can access the fund. There is no requirement to actually retire at this point. You can take 25% of the pension fund out tax free at this point. You can then decide what to do with the rest is then up to yourself - take it down and pay tax at marginal rate or wait until you are on a lower tax rate to withdraw the funds. Someone with a more detailed knowledge of pensions will be able to advise you in more detail here.
Either way, your pension pot is likely to be in the region of 140k after the 10 years (120k input + 20k growth), as opposed to around 70k outside a pension vehicle (60k input, 10k growth). Assuming the same funds, it would be double.
Assuming 140k, 35k tax free lump sum and marginal tax at 52% leaves you with 85,400 euro
Assuming 70k outside pension, you have exit tax of 41% on 10k, so left with 65,900 euro.
You also have the ability to reduce the tax paid on the pension pot by deferring until you get to 20% tax rate. Downside is you cannot access it until you are 60... but it appears to be a long term savings option for you in any event!
I see a few key corrections there. I did caveat it that someone with more knowledgeable pension advice would need to review the idea.Generally good advice but I have to put my pedant hat on and make a few corrections if you don't mind
Accepted - I do like round figures thoughA €1,000 contribution is more likely to cost you in the region of €700 than €500.
Apologies @rjjd I did actually think my idea would work (something similar was recommended to me recently in relation to a different scenario and different pension types (with multiple income sources))An attraction of the earlier proposal was that I could access it separately and in ten years. Note the net cost is 70% rather than 50%. Still very interesting and will be added into the mix (as it still seems the Zurich approach is not the most efficient use of resources).
I am surprised on the PRSA with the Occupational Pension though, as I do know a few people with both, but guess they are not actively paying into both at the same time.
as the Revenue could unwind all the tax relief they have claimed in the past.
@PGF2016; @Sarenco; @gnf_ireland
4. I’m fairly employable – I’m in a senior role with a blue chip. But probably senior enough for it to take a while for the ‘right’ new job to materialise.
. I’m fairly employable – I’m in a senior role with a blue chip. But probably senior enough for it to take a while for the ‘right’ new job to materialise.
This is the only thing that stood out for me. Having had this happen to my OH I can assure you that you very quickly become unemployable as your age goes over 50. So make sure you consider that as part of your calculations.
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