Layman’s guide to pension contribution

LISTED below is a layman’s guide to the distribution of pension contributions.

As the tax deferral on pension contributions is recouped when pensions are in payment this is not factored into these figures.

Standard PRSA providers are allowed to charge 5% of contributions paid and 1% pa of pension fund assets which equates to 25% over a working life of 40 years. A further 32% of the final pension fund is deducted by using an annuity rate of 4.6%.