Want to join a Pension Scheme

Hi,

I'm looking to finally join a pension scheme when I go back to work (currently on Maternity Leave). I don't have a clue where to begin or what I'm looking for, I'll put some details below that hopefully will help you to point me in the right direction.

Age: 39
Husband: 41
2 kids (6 & 9months)

Salary: €41k
Husband: €30k

We have a split loan with EBS, €164k owing on principal and €79k on split, our monthly payment is €732 but when I'm back to work we're going to pay an extra €118pm and make payments of €850.

I have CU savings of €20k, again when I'm back to work I will resume my savings of €500p/m

I have childcare payments for the first time (my mam used to look after 1st child for a lot less than a creche).

So I'm looking to just pay €100pm into a pension, I use the tax rate band to pay lower tax rate so I wouldn't get the tax relief on pension payment.

Any information / thoughts/ ideas you might have will be greatly appreciated.

Thanks,

Does your Employer provide a Pension Plan for staff?
If not, they must at least make a facility available for you to contribute to a PRSA through the net pay arrangement (ie deducting contributions from salary ).

Thank you for your reply.

No the pension plan is only for management. So I could say to payroll to include me in the pension plan (at my own expense) and they look after it?

Also could I come along in a couple of years time and put a lump sum of €50k into it?

If the Employer does not provide a Pension Plan for your grade, then you cannot join the Management Plan. But your Employer must at least facilitate deductions from salary if you decide to set up your own PRSA (even though the Employer wont contribute)
I suggest you discuss your desire to contribute to a Pension with the Employer and see what they offer (as a start).

re lump sum - you can add this later, but to maximise the tax relief you would be better off spreading this over a few years. For example 39yo on 41k in 2020, the maximum contribution for tax relief is 20% of 41k = 8.2k.

the tax free % rises as you get older - see https://www.revenue.ie/en/jobs-and-pensions/pensions/tax-relief-for-pension-contributions.aspx

But if you do put in a lump sum, you will get full tax relief over time. If you invest more than the yearly limit, any excess can be offset against future years. So for example if you invested €50k but your yearly limit was €8k, then €8k is offset in year 1 and the remaining €42k will be spread over the next 5 years approx.
It might also be possible to offset some of the €50k against the prior year, ie the tax year previous to investing the €50k.