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Pay into pension scheme with a

  • 15-04-2019 11:26am
    #1
    223vmax
    Registered Users, Registered Users 2 Posts: 475 ✭✭


    I'm getting a sizeable bonus from my current employer. I've been asked do I want it as a one off payment or paid into a pension scheme. As I currently have no pension scheme with my current employer or private pension, could I open a pension scheme and dump the one off payment into that account without having to regularly pay monthly into that account? I suppose its tax avoidance and understand that if I get it as a lump sum now minus tax would it be better to pay into a pension? How would tax deductions work on the pension account when I draw down?


Comments

  • #2
    3DataModem
    Registered Users, Registered Users 2 Posts: 4,077 ✭✭✭3DataModem


    223vmax wrote: »
    could I open a pension scheme and dump the one off payment into that account without having to regularly pay monthly into that account?

    Yes.


  • #3
    daheff
    Registered Users, Registered Users 2 Posts: 5,933 ✭✭✭daheff


    223vmax wrote: »
    How would tax deductions work on the pension account when I draw down?

    works like income does now. pension becomes your income in later life.


  • #4
    223vmax
    Registered Users, Registered Users 2 Posts: 475 ✭✭223vmax


    Can you close down a pension scheme and transfer into a regular account before you retire? ( I understand that there would be tax deductible)

    Are there penalties involved in closing down pension accounts?


  • #5
    Policy Review
    Registered Users, Registered Users 2 Posts: 21 ✭Policy Review


    You will find it near impossible to close down a pension, unless its under a certain amount and you have to take early retirement due to ill health for example. Once the money is in a pension pot you can claim the tax back which is a great benefit and the money will be handy for when you retire. The state pension is not a golden ticket and can be quite difficult to live on alone.


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