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How much will pension cost me

  • 22-11-2013 12:12pm
    #1
    rodge123
    Registered Users, Registered Users 2 Posts: 1,480 ✭✭✭


    I'm thinking of joining the company pension plan in a few months (After initial 6 month probation period).

    I'm 30, on 60k and if I contribute 5% the company will match this.

    How much will this reduce my take home pay per month by?
    My rough guess is:
    (60000/100)*5 = 3000
    After Tax relief (~50% with prsi and usc) 3000 / 2 = 1500
    1500 / 12 = 125

    So €125 is my rough guess.

    What I am unsure of is this:
    - Will I pay BIK on my companies 5% contribution?
    - Is my 50% tax relief estimate accurate?

    Thanks


Comments

  • #2
    Buzzliteyear
    Registered Users, Registered Users 2 Posts: 25 ✭Buzzliteyear


    41% relief. So cost per month €147.50. Go for it!! Double your money and get a tax break!! Good deal


  • #3
    MikeinLucan
    Banned (with Prison Access) Posts: 13 ✭MikeinLucan


    60k salary, with 5% by you and your employer = 6k per year, and actual cost to you would be 1770 - its a great deal. Just check what options are available to you to invest in - this is very important as you've a long way before retirement (38 years before you can get the state pension). seek independent financial advice (not your company's financial adviser).


  • #4
    Liam D Ferguson
    Registered Users, Registered Users 2 Posts: 542 ✭✭✭Liam D Ferguson


    rodge123 wrote: »
    What I am unsure of is this:
    - Will I pay BIK on my companies 5% contribution?

    No.
    rodge123 wrote: »
    - Is my 50% tax relief estimate accurate?

    As buzzliteyear said above, only tax relief so 41% relief on €250.00 per month. You'll pay a net €147.50 per month for €500.00 per month going into your pension fund.

    Some of the tax is deferred i.e. you may well be taxed on some part of your pension when you retire, but it's still a good deal.


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