Pensions
What is a pension?
A pension is a long-term saving plan that helps you save for your future. Unlike a regular savings account, money invested in your pension can earn important tax breaks and when you retire and look for access to your fund, the benefits can be available in a tax efficient way.
Choice:
There is more than one way to enjoy your retirement and there is more than one type of pension.Control:
There is more than one way to enjoy retirement and there is more than one type of pension. With my knowledge I can give you the right advice to choose the best pension for you.Flexibility:
With Tax relief, employer contribution and optional lump sum payments, you can save according to you age and earning which is set out by the government.
Personal Pension
A Personal Pension is a pension plan issued by a life insurance company to an individual. There are no employer contributions made to the pension plan and as the name suggests
Executive Pensions
An executive pension is a defined contribution occupational pension plan, issued by a pension provider to an employer, with an employee/director of the company named as the beneficiary of the pension plan.
PRSA
A PRSA Personal Retirement Savings Account is a personally owned pension that lets you save for retirement on your own terms A PRSA or "personal retirement savings account"
Personal Retirement Bond
Allows you to bring your pension benefits with you, if you leave service and have been a member of a Employer Contributory Pension scheme.
Approved Retirement Fund
An ARF allows you to invest all or part of your pension fund after you retire. You can decide on the type of fund you would like to invest in, and the amount of risk you're comfortable with.
Why take out a pension ?
- With many living longer than previous generation, a personal pension will give you a standard of living based your on earning so you can enjoy your retirement the way you had planned whether you want to travel or just enjoy the simple pleasures in life.
- The state pension will not be available to claim till you are 68 and on its own will not give you a very good standard of living.
You Can’t rely on the state pension (contrbutory) alone
Today, the State Pension (Contributory) is worth about €233.30 per week. We can't predict what will happen, but we do know that starting a pension can give you greater ownership of your future.
What your pension will be worth ?
The value of your pension at retirement depends on how much you can afford to put away each month,
- the length of time you are making contributions,
- the type of pension plan you select and the investment return.
One thing we know is that the sooner you start a pension, the bigger it should grow.
Contributions
How much should I contribute? It's one of the most common questions people ask. While there's no minimum amount, the maximum amount you can contribute depends on your age.
| AGE | MAXIMUM CONTRIBUTION BY AGE |
|---|---|
| 29 or younger | 15% of net relevant earnings * |
| 30 - 39 years | 20% |
| 40 - 49 years | 25% |
| 50-54 years | 30% |
| 50-54 years | 35% |
| 60+ | 40% |
* These are percentages of your earnings up to €115,000 (in 2015). If you're a professional athlete, your limit will be 30% of earnings, regardless of your age. (Contributions - This section to be entered under each pension option)
