Options on pension

[blurch]

I have eventually got to a position that I can start putting monies away.
I was never in a position to pay into a pension until now.
I have about 40k in the bank which can be transferred to a pension. I am now also able to put 1 / 1.5k a month away.
At 50 what should I be looking at, any advise would be appreciated.

 

[Conan]

Really depends on your employment status. Are you:
- self employed
- a Company owner
- an employee (and if so does your Employer offer a Pension facility and will they contribute also?)

 

[Steven Barrett]

If your employer isn't contributing, set up a personal pension plan. If your employer is contributing, set up an executive pension plan.

You won't be able to just stick the full €40k into a pension and claim tax relief on it immediately. At 50, you can claim tax relief on pension contributions on up to 30% of income (you can also backdate it to last year. People in their 40's can claim tax relief of 25% of income). Any money that tax relief is not claimed on is carried forward.

I wouldn't put all of the €40k into the pension. You should keep some cash on hand for cashflow purposes.



Steven
http://www.bluewaterfp.ie (www.bluewaterfp.ie)

 

[Zenith63]

You won't be able to just stick the full €40k into a pension and claim tax relief on it immediately

Not that it is necessarily a good idea, but depending on their income level could they not make a contribution for 2020 of €35k and file a tax return immediately to get relief on that?

 

[blurch]

Thanks, I am employee. The company does not provide anything.
The 40k leaves a bit still in the savings its not doing anything,