r/irishpersonalfinance Sep 21 '21

What age are you, and how much is in your pension(s)? Retirement

With pensions in the news, I thought this would be an interesting discussion.

I am 30, and have 1 pension that currently contains €62,399.

I currently contribute 15% and my employer contributes 6%. Come January, I will up my contribution to 20%. I would have 2 pensions, but I merged them as my current one has much lower fees. My pension is 100% in Indexed Global Equity.

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u/the_one_jt Sep 21 '21

37, €102,426.30

Employer PRSA plan. I contribute 6%, employer 7%. I then put 14% AVC. Combined this is 27%. I might be contributing above the amount for tax relief as something I read says my employer contribution counts against my 20% for my age if it's a PRSA. Once I fully understand this I might reduce this amount, and move more into taxable accounts.

IrishLife 18.4% - Indexed Emerging Market Equity Fund 81.6% - Indexed World Equity Fund-Partially Hedged

Really have limited options here on what to invest in.

1

u/TarAldarion Sep 21 '21

Yes you are above the limit, you'll get hit with a tax bill I guess, not sure how they do it.

1

u/fruitydanimals Feb 25 '22

How does that work? I contribute over my tax deductible 15% (20 for me + 8 for employer) but my return was a lot this year and I haven't noticed big tax bills over the 2 years I've worked here...curious! Thanks for any insight you provide.

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u/TarAldarion Feb 25 '22 edited Feb 25 '22

Honestly I'm not sure, if there has been extra tax relief on that and find out about it you could be hit with fines on top of the tax, but you'll probably have to contact them to know what's up. The reason you've not noticed anything is they haven't noticed yet.

Edit: I read on a providers site now that "penalties are applied" when you break the limits but it doesn't say what.