“You will probably reach a point in your life when you either can’t or don’t want to work, and will need some savings to draw on – and a pension is the most efficient and secure way to build up those savings.
“About two-thirds of men and three-quarters of women now reach the age of 75.The state pension is only be worth about €11,000 a year, so the chances are you will need some savings to fall back on. The most important thing to do is make sure you have made a retirement plan – preferably something more scientific than buying a lottery ticket every week. There are a variety of savings schemes available, but none are as efficient as a pension.
“Pensions enjoy generous tax breaks. Every €80 you pay in gets rounded up to £100. If you are a higher rate taxpayer you can claim a further €20 on top. And your money grows largely tax free. When you get to retirement you can take a quarter of it back as a tax-free lump sum, and with a pensioner’s personal allowance standing at almost €11,000 a year, a substantial portion of the regular income paid to you may be tax free too.
“What’s more, if you die before retirement the fund is paid out to your next of kin as a tax-free lump sum.
“Possible Forthcoming reforms here mean that your employer will soon be required by law to pay into your pension for you as well.
“When you do reach retirement there are a range of ways to create your income. You can buy yourself a guaranteed lifetime income (an annuity), but if not you can keep drawing down an income from your pension fund right up to the day you die. When you do die, up to 45% of your pension fund (after tax) can be passed on to your children, or the full fund value can be used to provide your spouse with an income.
So with tax relief ,excellent growth funds and options at retirement,it makes perfect sense to get your pension started.
You certainly won’t make any money leaving your savings in the bank ,as we know banks are actually charging us for saving now.
Call me today on 01 6339245 to get your retirement started or email me on
Darragh.farrell@yes.ie