Second career - possible PRSA?

Slim

Registered User
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2,759
Hi all.

I will probably retire from my public sector occupation towards the end of the year with almost full pension. The reason it is 'almost' is that I will retire a couple of years younger than the minimum for my occupation. My wife will also retire this year with less than full pension.

I have the opportunity to work part-time with a former colleague in an area of our shared expertise. This is an unexpected opportunity which has just come up. My expectation is that it would bring in between €10-25k in a full year. So far so good! The issue is;
between my and my wife's pension and her PRSA drawing, we will probably receive about €54k in pension in a full year. That leaves about €14k before we hit the higher tax rate. I would be comfortable earning only the €14k or so but that may depend on demand etc.

My question here is: Can I set up a PRSA for my earnings in this second career while drawing my occupational pension?

There is also the possibility to take out a 'last minute' PRSA to supplement the lump sum. Does this affect my ability to open another PRSA in the new career?

Although I am in the public sector, I feel the question is more relevant to general pension issues. Thanks, Slim.
 
Your last minute PRSA will be a PRSA AVC plan and will be related to your public sector employment. When you retire and draw your benefits, you will have to mature it at the same time.

When you commence your new career, that will be completely separate and you can contribute to a PRSA, which is unrelated to your previous employment. There is no problem in starting a new pension.


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