Nobody looks forward to paying tax. Sometimes it can seem like we are working just to pay the tax-man! But did you know, you can cut a chunk off your annual tax bill – simply by taking out a pension plan? You can avail of up to 41%** relief on your contributions, which means that every €100 is actually only costing you €59. Now, where else can you make a saving like that?
Great value savings with pensions
The example below shows you how this works in practice, based on a pension contribution of €370 a month over 30 years. Not only can you get tax-relief on your contributions under current legislation, but the fund in which your contributions are invested also benefits from tax-free growth.
The result is the prospect of a superb return on your investment, based on both the tax efficiency of the pension plan and the growth potential of the fund over the full 30 years. As you can see, almost a quarter of your fund could be made up of tax relief by the time you retire!
Based on a tax-payer qualifying for 41% tax and 6% PRSI relief and earning 6% growth investing in New Ireland’s standard PRSA with 3% escalation rate over 30 years. Standard PRSA charges apply.
Warning: These figures are estimates only. They are not a reliable guide to the future performance of this investment.
There is never a bad time to start
With the generous tax treatment of pension contributions, under current legislation, there is never a bad time to start saving into a pension, or to top-up existing contributions to your pension plan.
To find out more about making the most of your hard-earned cash, talk to your Independent Broker, New Ireland Financial Advisor or call us on +353 (0)1 523 810.
*Depending on age, employment type and term to retirement, by starting a pension today, you can take from 6% to 19% of your working week back, courtesy of the taxman. Terms and conditions apply. It is important to note that tax relief is not automatically guaranteed, you must apply to and satisfy the Revenue requirements. Revenue limits, terms and conditions apply. Your benefits at retirement may be subject to tax.
**assuming you are a higher rate tax-payer (41%).Terms and conditions apply. It is important to note that tax relief is not automatically guaranteed, you must apply to and satisfy the Revenue requirements. Revenue limits, terms and conditions apply. Your benefits at retirement may be subject to tax.