Pension query

H

horusd

Registered User
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Hi Guys , just looking 4 some pointers on a pension. I am currently retired thro ill health at 44. But want to contribute 2 a pension as its likely ill be around a while!...(fingers crossed!). I'm not sure whether PRSA or some other type of pension product would be best. Any tips as to the best options?
 
If you are "retired" on ill health then I dont think you can effect a new Pension.
To effect a Pension Plan you normally need to have a "source of relevant earnings". An existing pension is not deemed to qualify in this regard.
Yes, you could effect a PRSA, but even here you would not get any tax relief (as you dont have a "source of relevant earnings" against which to offset the PRSA contributions). A source of relevant earnings is generally "earned income" and a pension would not qualify as an income on which a pension could be funded.
And if you wont qualify for tax relief on the contributions then there is no point (since you will eventually be taxed on the income when drawing the pension).
If you want to save then I suggest a regular savings plan.
 
There's one possible exception to Conan's advice above. If you're actually in receipt of a claim on an Income Protection / Permanent Health Insurance plan rather than being "retired" and in receipt of a pension, an Income Protection claim is usually considered assessable earnings for the purpose of making a pension contribution.
 
Unfortunately because you are not currently in employment you cannot contribute to a pension and claim tax relief. What you can do is look at setting up a long term savings plan with the intention of using this as a substitute for your pension. J
 
Thanks for the advice everyone. much appreciated ....I'll check out the L.T. savings plan
 
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