For many people retirement will last more than one third of their lifetime. While planning for retirement can seem a long way off and a bit daunting, but starting a pension plan doesn’t have to be. The important thing is to start as soon as you can. The longer you put money aside into your plan the more potential for your pension savings to grow.
Simply put it’s the money that you will live on once you stop working. It basically replaces the salary or wages that you earned before you retired. The government want to encourage people to save for their retirement so they put in place attractive tax treatment.
The state pension is currently €265.30 per week, without any additional pension savings in place you could have a significant drop in your income when you retire. For example, someone earning a salary of €40,000 when they retire will experience a 70% drop in income, if they are solely dependent on the state pension.
The contributions that you make to your pension plan, qualify for significant tax relief, up to certain limits set by the Revenue Commissioners. This tax relief makes investing in a pension a very attractive savings option. Add the impact of compound interest and it is a very good saving option for your future.
Wouldn’t you like to know how much money you need to retire, semi-retire or simply achieve financial independence? You already might have an idea but we can check it for you and confirm you are on the right track. Depending upon your job there are different pension plans.
It’s a way of saving that may give you important tax breaks on what you pay into your plan. You can use it to build up money and give yourself an income after you retire. You may have to pay tax on this income. Money saved into your pension plan is invested with the aim of growing over time. With improvements in health care and lifestyle, people are living much longer and leading more active lives in retirement. While increasing life expectancy is a good thing, it is also something you need to consider when planning for your retirement. Your retirement savings may need to last over 20 years after you finish working. A pension can help you ensure that your retirement years are spent doing more of the things you love like travelling, retiring to the country or spending quality time with the grandkids.
In the future the State Pension provision is going to come under increased pressure. Currently, for every 1 retired person, there are 5 people in employment. By 2050, there is expected to be less than 2 people in employment for every retired person (Source: Finfacts 2016).
Wouldn’t you like to know how much money you need to retire, semi-retire or simply achieve financial independence? You already might have an idea but we can check it for you and confirm you are on the right track. Depending upon your job there are different pension plans.
It’s a way of saving that may give you important tax breaks on what you pay into your plan. You can use it to build up money and give yourself an income after you retire. You may have to pay tax on this income. Money saved into your pension plan is invested with the aim of growing over time. With improvements in health care and lifestyle, people are living much longer and leading more active lives in retirement. While increasing life expectancy is a good thing, it is also something you need to consider when planning for your retirement. Your retirement savings may need to last over 20 years after you finish working. A pension can help you ensure that your retirement years are spent doing more of the things you love like travelling, retiring to the country or spending quality time with the grandkids.
In the future the State Pension provision is going to come under increased pressure. Currently, for every 1 retired person, there are 5 people in employment. By 2050, there is expected to be less than 2 people in employment for every retired person (Source: Finfacts 2016).