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Pension when moving jobs often / boss's contribution to pension

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  • 10-05-2020 4:07pm
    #1
    GoldenSlumbers
    Registered Users Posts: 50 ✭✭


    Hi, in my line of work (childminder) it's normal to move jobs every couple of years. I've heard of personal retirment savings account that you can keep as you move jobs? Any tips for what do with pension when you often move jobs?

    Also could I set my amount of pension contributions to like 50 or a 100 and maybe raise the amount I contribute to my pension as I get older. I'm 30 at the moment and do want to start working on my pension, but can't save lots right now.

    I'm also hoping my employer will help with these pension contributions. Will it put my employer in a huge financial burden though? 10% of my wage would be 160 net per month going to my pension fund. And I'm assuming that 50% would be paid my boss if she agreed to it? Does that mean she's losing an addition of 80 euros to me? Or does she get some tax relief on this amount too? I wouldn't want to suggest the pension payment to her if it's putting too much of a financial strain on her.

    Thank you. J


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    #2
    Henry Ford III
    Moderators, Business & Finance Moderators Posts: 17,638 Mod ✭✭✭✭Henry Ford III


    A PRSA sounds like a good fit. They are flexible and a standard PRSA will be reasonable value.

    Investment choices aren't huge though.

    As always get proper independent advice.


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    #3
    Make It Real
    Registered Users Posts: 62 ✭✭Make It Real


    PRSA would be a good choice alright. You own it, so there's no real connection to your employer, other than they might contribute to it.

    You can vary your contributions as it suits you. Also, contribute every month or on ad hoc basis, like annually or if you have unexpected cash free.

    I'm not clear on what you mean by the 50% being payable to your boss if they contributed, to be honest.

    I'm not very well up on tax treatment of pension contributions made by employers, but fundamentally any contribution they'd make would be an expense to their business, so they'd write it off against their overall tax bill (i.e. Corporation Tax). So it wouldn't cost them the full amount. There are probably nuances and other factors here, so I'm open to correction.


    The question I'd have is how to you will go about looking for this contribution?

    If there are other employees, do they get a contribution already? What is the employer's policy on it?

    You are effectively looking for a 10% increase in your gross pay, albeit into a pension rather than payroll.

    How will you make the case for that stack up?


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    #4
    GoldenSlumbers
    Registered Users Posts: 50 ✭✭GoldenSlumbers


    Make It Real wrote: »
    PRSA would be a good choice alright. You own it, so there's no real connection to your employer, other than they might contribute to it.

    You can vary your contributions as it suits you. Also, contribute every month or on ad hoc basis, like annually or if you have unexpected cash free.

    I'm not clear on what you mean by the 50% being payable to your boss if they contributed, to be honest.

    I'm not very well up on tax treatment of pension contributions made by employers, but fundamentally any contribution they'd make would be an expense to their business, so they'd write it off against their overall tax bill (i.e. Corporation Tax). So it wouldn't cost them the full amount. There are probably nuances and other factors here, so I'm open to correction.


    The question I'd have is how to you will go about looking for this contribution?

    If there are other employees, do they get a contribution already? What is the employer's policy on it?

    You are effectively looking for a 10% increase in your gross pay, albeit into a pension rather than payroll.

    How will you make the case for that stack up?

    I suppose it would be a 5% "pay increase" for them, as I'd be paying the other 5%. I'm their solo employee. I think I will notify her that I want to get setup for pension, but I think their contribution to my pension is voluntary (though the might be making it mandatory in 2021 I read).

    "I'm not clear on what you mean by the 50% being payable to your boss if they contributed, to be honest." - I think contributions to pensions are split 50-50 between employer and employee.


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    #5
    Henry Ford III
    Moderators, Business & Finance Moderators Posts: 17,638 Mod ✭✭✭✭Henry Ford III


    I like your idea op but I've yet to see anyone in childcare (excluding directors) with a pension arrangement of any sort.

    It'd be quite rare.


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    #6
    GoldenSlumbers
    Registered Users Posts: 50 ✭✭GoldenSlumbers


    Henry Ford III wrote: »
    I like your idea op but I've yet to see anyone in childcare (excluding directors) with a pension arrangement of any sort.

    It'd be quite rare.
    thanks henry. yeah it's hard to suss out what options most people have. good to know what the situation would be like, seeing most of these jobs only last 3-5 years at most.


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    #7
    MerlinSouthDub
    Registered Users Posts: 1,612 ✭✭✭MerlinSouthDub


    Henry Ford III wrote: »
    I like your idea op but I've yet to see anyone in childcare (excluding directors) with a pension arrangement of any sort.

    It'd be quite rare.

    Agree it is rare, but it does happen. Our local creche provides a pension contribution to staff who stay for 2 years or more. They felt they needed to do it to retain staff.


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    #8
    GoldenSlumbers
    Registered Users Posts: 50 ✭✭GoldenSlumbers


    Thanks so much for the advice. So does anyone have tips on PRSAs? Davy? LA Broker, Zurich. I'd love to have a pension with an advisor (cause I don't know much about money), that relatively low risk. Though I suppose I could start high risk as I'm still young.


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