Company pension or private pension with bonus

WhatsGoingOn2

Hi,

My wife as been offered a new job. The company she is going to is a start-up and they don't currently have a defined pension plan. She has been offered an annual €4k in lieu of this. The company have given her the option of paying that money directly to her, or setting up a pension plan on her behalf.
Which should she do?

Thanks.

homer911

Ask for more information, then go see a pension adviser


For example what are the entry and maintenance costs on the scheme the company would be setting up for her?

Merowig

Perhaps the company can as well take over the costs of the fund? Or your wife can nominate a low cost provider herself to be set up?

If I was her I'd take the bonus and set up a PRSA with Davy, invest the money (along with a personal contribution) primarily in a Euro ETF, some in a US ETF and some in a UK ETF.

The company will I imagine liaise with whoever they do their banking with or a pension provider someone in HR dealt with in a previous job and go with one of them.

Merowig

Every company has to offer a PRSA/pension plan after 6 months of employment.
Is there any advantage of going with the PRSA the company is offering in comparison to pick the PRSA oneselves (assuming the employer won't contribute in both scenarios)?
Apart of automatic payroll deduction and tax credits immediately applied?

Merowig

Merowig wrote: »

.........
Apart of automatic payroll deduction and tax credits immediately applied?

Nope imo.