State Pension?
You might think that the State Pension is there for you to fall back on. It`s true, the State Pension is there fore you, but at just €230 per week this is a long way to fall from the earnings you currently enjoy. Just think about the impace that fall would have on your lifestyle. Also with the state of our national finances its far from certain that the Government will be able to increase the level of the State Pension to even keep pace with inflation.
The good news is that you will benefit from significant tax relief of up to 41 per cent on your pension contributions, subject to certain limits that increase with your age. Also when you contribute to a pension, the fund in which your contributions are invested will benefit from tax-free growth. That means that money invested through a pension will grow much faster than after tax money invested outside a pension
Pensions – risky Investments?
Many people look at the recent devastation in investment and property markets with the consequent drop in pension fund values and conclude that pensions represent risky investments. Whilst many pension funds have fallen in value but that does not necessarily mean that pensions have to be risky. A pension can be invested in high risk, low risk or no risk investments. It is really up to you to decide on the level of risk you wish to take. For example your pension can be invested in a deposit account with a bank or the Post Office or in Government bonds. The real issue is that the tax breaks given to a pension makes it a much better way to save for your retirement.
Find the right pension to suit your circumstances
Pensions come in all shapes and sizes, with various levels of flexibility and benefits, so you’re sure to find a pension that fits your current circumstances and retirement expectations.
PRSA
Personal Retirement Savings Account is a good idea if you`re self-employed, don`t have access to a pension at work, or work casually or part time.
Personal Pension
If you`re self-employed or employed but not part of an employer`s pension scheme, then a personal pension plan lets you plan for your retirement and enjoy the tax benefits.
Company Pension
Every employer has some form of pension obligation to its employees. There are numerous pension options that allow companies to meet their obligations and provide a mutually rewarding benefit for their staff.
Executive Pension
As a director or business owner you can provide for your retirement in a way that is separate from the fortunes of your business and takes full advantage of the generous tax benefits.
Self Administered Pension
These are well worth considering if you`re an owner-director or senior employee of a business and you can make substantial pension contributions. You get to choose from the full range of investment options on the market including equities, bonds, cash, currency. You can even invest directly (and very tax-efficiently) in property.
