Time flies when you’re busy living your life to the full. And if you think the last 20 years have flown by, imagine how quickly the next 20 years will go!
At this stage, those who haven’t been holding back part of their income for retirement have some catching up to do. Put simply, someone in their 40s may need to consider that their next 25 years of income may need to fund up to 50 years of living. That requires thinking about how today’s income is being allocated.
The good news is help is at hand. There are lots of tax benefits when saving for your retirement, and these only get better the older you get! So now is the time to take action and start planning for your future in retirement.
One of the best things about saving to a pension is the generous tax relief currently available (up to 41%* for a higher rate tax payer).
The age at which you may qualify for the state pension is going up …
. . this could leave a gap of a number of years between when you would like to retire and when you will qualify for the State Pension
The qualifying age for the State Pension (Contributory) will rise to 67 in 2021 and 68 in 2028.
- If you were born on or after 1 January 1955 the minimum qualifying State Pension age will be 67.
- If you were born on or after 1 January 1961 the minimum qualifying State Pension age will be 68.
Of course, this gap will be even more significant if you decide to take early retirement. By putting plans in place now, you can bridge this financial gap.
Why not bridge the financial gap with a pension from New Ireland? After all, why let someone else decide when you retire? Saving what you can afford to now will mean greater control over your own financial future in retirement.
For advice on how to make the most of your retirement savings now, talk to a qualified financial advisor today.
*Assuming higher rate taxpayer 41%. It is important to note that tax relief is not automatically guaranteed; you must apply to and satisfy Revenue requirements. Revenue terms and conditions apply.