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Setting up pension when your company doesn't have a pension scheme.

  • 18-11-2018 8:39pm
    #1
    Dont_Cry For_Me Argentina!
    Banned (with Prison Access) Posts: 13 ✭


    I currently work for a company which has a pension scheme, I pay 5% into my pension every week (the max I can for my age, 27) and I am not taxed on that contribution when putting it in.

    I am looking at another job which does not have a workplace pension scheme, because the place doesn't have a pension scheme, does that mean I won't be able to put that 5% in tax free every week?

    Will I have to take all my net salary after tax each month and then put it in> Or can you still avail of the tax relief if you pay in yourself?

    Thanks, folks.


Comments

  • #2
    Liam D Ferguson
    Registered Users, Registered Users 2 Posts: 542 ✭✭✭Liam D Ferguson


    You can set up your own Personal Pension or Personal Retirement Savings Account (PRSA). You will pay the full amount from your bank account by Direct Debit. But you get the same tax relief. You will get a tax certificate with your policy document and you send this to Revenue and ask them to increase your tax credits. Yours tax credits go up and so your take-home pay also goes up, by the amount of your tax relief.

    So you get the same tax relief as you do now - you just have to apply for it.

    As an aside, there's a legal obligation on all employers to offer you access to some for of pension arrangement once you have worked there for six months. They don't have to contribute, but if you decide to contribute they must operate salary deduction for you through payroll - like what you have in your current job. That said, I am aware that some employers just don't do this.


  • #3
    evolving_doors
    Closed Accounts Posts: 11,812 ✭✭✭✭evolving_doors


    Just shop around for PRSAs. Some will screw you on administrating charges and contribution fee... find out both.

    I've nothing to do with the company but I read a few recommendations for LAbrokers for low fees. He'll send you the forms but give zero advice (unless you pay for the advice).


  • #4
    Henry Ford III
    Moderators, Business & Finance Moderators Posts: 17,727 Mod ✭✭✭✭Henry Ford III


    evolving_doors wrote: »
    Just shop around for PRSAs. Some will screw you on administrating charges and contribution fee... find out both.

    I've nothing to do with the company but I read a few recommendations for LAbrokers for low fees. He'll send you the forms but give zero advice (unless you pay for the advice).

    Good advice is always well worth paying for imho.

    p.s. I'd favour a PPP over a PRSA due to wider investment options. PRSA's are quite restricted.


  • #5
    mrcheez
    Registered Users, Registered Users 2 Posts: 13,811 ✭✭✭✭mrcheez


    evolving_doors wrote: »
    Just shop around for PRSAs.

    Why would a PRSA be better than a standard personal pension?


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