Why retirement planning is so important
Why is a pension a good thing for me?
Everyone knows that it makes sense to plan for retirement and one of the most cost effective ways of doing so is to take out a pension.
The Importance of Starting Early
- The maximum State Retirement Pension is currently €230.30* per week. Could you survive on this?
- We are living longer than ever before, up to 20 years in retirement**, and our population is getting older too.
A Pension Is A Great Way To Cut Your Tax Bill
Tax Relief - With up to 49% tax relief available, for every €1 you save to your pension, the Government gives you nearly another €1 (including income tax/ PRSI/Health levy relief)***.
Tax-Free Growth - Under current legislation the money you contribute is allowed to grow tax-free.
Tax-Free Lump Sum - Part, or in some cases all, of your fund may be taken as a tax-free lump sum at retirement.
There Has Never Been A Better Time To Invest
With stock markets at relatively low levels, your money will purchase more units in your chosen pension fund. By investing now, you will be better positioned for when the stock markets recover and the value of your pension fund increases.
Find out more about how regular investing in your pension is better value right now.
+Based on a 25 year old, with salary of €30k p.a. investing €60 per month in IRIS 2048-2049. Assuming growth of 6% and premium indexation at 3%. Including 5% premium charge and 1% Annual Management Charge. Assuming normal retirement age of 65. These figures are estimates only, they are not a reliable guide to the future performance of this investment.
*As at November 2009
**Quarterly National Household Survey, Central Statistics Office, Q4-2005
*** Assuming higher rate tax payer, 4% PRSI, 4% Health levy relief. It is important to note that tax relief is not automatically granted. You must apply to the Revenue terms and satisfy their conditions. Revenue limits, term and conditions apply. Your benefits at retirement my be subject to tax.