Hi,
Just wondering if my thinking below is too good to be true?
I'm not currently maximising my pension contributions due to needing the funds for daily life and I'm wondering if there's a legit way of doing that. I'm currently contributing 13% to my pension but 30% contributions would be allowable by Revenue if I had it to spare.
I have a DC scheme with my current employer and 4 other PRSA/PRBs from previous employers. I'll be 54 this year and estimate I could have a total pot of €800k by the time I'm 62 depending on performances.
However if I were to 'cash in' my 4 PRSA/PRBs in a staggered way over the next 5 year and use the lump sums to supplement my daily living expenses then I believe that I could maximise my current pension contributions from my current employment up to the Revenue limits. I estimate that this would allow me to reach the €800k approx. 2 years sooner. I know that I'm limited on the total tax free lump sum element but is it legit and sensible to do the above?
I'd be effectively using my currently unused tax relief to fast track my retirement/maximise my pot?
Just wondering if my thinking below is too good to be true?
I'm not currently maximising my pension contributions due to needing the funds for daily life and I'm wondering if there's a legit way of doing that. I'm currently contributing 13% to my pension but 30% contributions would be allowable by Revenue if I had it to spare.
I have a DC scheme with my current employer and 4 other PRSA/PRBs from previous employers. I'll be 54 this year and estimate I could have a total pot of €800k by the time I'm 62 depending on performances.
However if I were to 'cash in' my 4 PRSA/PRBs in a staggered way over the next 5 year and use the lump sums to supplement my daily living expenses then I believe that I could maximise my current pension contributions from my current employment up to the Revenue limits. I estimate that this would allow me to reach the €800k approx. 2 years sooner. I know that I'm limited on the total tax free lump sum element but is it legit and sensible to do the above?
I'd be effectively using my currently unused tax relief to fast track my retirement/maximise my pot?