PENSION

peakpilgrim

Hi

I recently lost 40% of my pension deposits in the slump. Recently I was putting in 25% of salary; the maximum amount tax-free.

Am I allowed to increase my tax-free contributions to say 40-50% tax-free; as a result of having lost so much of my deposited money?

Regards.

seven-iron

dont think so. Im presuming your in your 40's. when you turn 50 you will be entitled to contribute 30%,
55; 35%
60; 40%

Are you in a denfined benefit scheme or a defined contribution scheme? If your in a DB scheme you should still get a decent pension as it is fixed (or defined). Your company or fund are obliged to pay it if their not in trouble and can afford to. I'd say your gutted, there are many many people in your position not that it is any consolation.

peakpilgrim

Hi

I am in a contribution scheme so the money is gone.I just wondered if there were any tax concessions in such a situation; as the current value of the deposits is much less than 25% of my salary during the years I was paying into it.

I know that there are many people worse off; particularly those near retirement who were caught out; I still have plenty time to build up my fund.

I am thinking of managing my own pension in the future as the 'Managed' fund wasn't actually managed to any degree; I don't think I could do much worse than this. Stock markets are cyclical and I was surprised that the fund was allowed to fall so far without any action being taken by the fund manager.

Is it possible and legal for an individual to manage his, or her, own pension; with full tax benefits?. How would a person go about it?

Regards

Mr. Incognito

Hi there,

Pensions are complex creatures.

There are self administered pension schemes but there are bars on what self administered schemes can and cannot contribute to.

Here's a link with info:

http://www.revenue.ie/en/about/foi/s16/pensions/index.html

Sorry to hear you lost a bundle but that's the nature of pensions. People should be more pro-active as to what exactly their pension is going into. If you are unhappy with your pension provider they usually allow you to switch once a year with no penalties. Shop around, there are very good pension schemes out there.

indigopopz

In simple terms it depends on a % of your Net Relevant Earnings if you're self Employed.
Likewise relief for Pension Contribution schemes is similar,in that relief is given,depending on your age.