Pension and tax efficient way to manage bonus

rolypoly1

Registered User
Messages
7
Age: 39
Spouse’s/Partner's age: 39

Annual gross income from employment or profession: 10,000 PT
Annual gross income of spouse: 56,000 basic + bonus’s =100,000

Monthly take-home pay 5000 (average)

Type of employment: both Private sector
In general are you: Saving – I’ve just returned to work so plan is to save my wage and remain living off spouses.

Rough estimate of value of home 250,000
Amount outstanding on your mortgage: 130,000
What interest rate are you paying? 4% variable as we overpay each month and throw extra off when we can - on track to have mortgage gone by the time we're 43

Other borrowings – car loans/personal loans etc – 2 cars @ 320 each per mth (no public transport & spouse travels a lot with work so need 2 reliable cars) - 2 years left on mine, 5 years left on spouse, just bought it but changes car regularly so payment will roll on.

Do you pay off your full credit card balance each month? No credit card
If not, what is the balance on your credit card?

Savings and investments: 50,000 rainy day fund in credit union account plus child allowance saved to Childcare plus account for future education

Do you have a pension scheme? No


Do you own any investment or other property? no

Ages of children: 10 & 14

Life insurance: yes for both of us


What specific question do you have or what issues are of concern:

Neither of us have a pension so we need to get this sorted asap. Should we open pension plan and put a lump sum in from savings to make up for starting a pension later?


Also spouse gets profit share once a year. This is around the 40k mark but is put in with his monthly pay so it gets halved by tax. Is there a smart financial way around paying so much tax on it?

When we start paying into pension, can he opt to put a larger amount in on the month that his profit share is due to try make the most of the tax benefit a pension can offer?

Thanks!
 
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