Pensions
Retirement planning is vital. Typically, we don't spend money whilst working – it's when we're not working, i.e. on holidays etc., that we spend money! Consider being off or on holiday permanently once you retire but having far less income to support your new standard of living.
Planning for a comfortable retirement is a long-term investment strategy that is significantly helped by the availability of invaluable tax relief on contributions (up to certain limits).
Your retirement may seem like a lifetime away but the truth is, the sooner you start planning for it, the more comfortable your retirement should be. Nowadays, pensions are portable and flexible to adapt and suit people's evolving needs and circumstances.
Some types of pensions (PRSAs) are available to anyone, regardless of one's employment status. They can be portable so that you can take them with you if you change jobs. Flexible, because you and your employer, if any, can make contributions and you can increase or decrease those contributions, or even take a payment holiday at any time. Tax relief is generally available on your contributions and any investment growth is tax-free.
If you are already a member of a company group pension scheme, then you may be in a position to improve the benefits you receive on retirement by making extra payments, known as AVCs.
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It helps to start retirement planning early. The sooner you start making contributions, the bigger your retirement fund should be when you finally retire. You can start a pension at any time once you are over 18. The older you are when you start, the bigger the contribution you will have to make to build up a healthy pension.
The State Pension (contributory) is currently worth about €1,200 a month. While it's helpful, it's not going to give you a comfortable life on its own. The State Pension is funded by taxes paid by Ireland's workforce. But Ireland's population is ageing, so in the future, there will be more retirees sharing a smaller pot. In short, you should not rely on the State to provide your pension. The only way to ensure the retirement you want is to take ownership of it yourself.
The single most important consideration is how much you should save. That depends on a number of factors - when you would like to retire, what lifestyle you would like in retirement and how much can you currently afford to save. Of course, this may vary for lots of reasons throughout your working life.
We will tailor a pension plan to secure and protect your future. We'll source the best options in the market and support you in achieving future financial security.
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