PensionsYour retirement may seem like a long way off, but it is never too early to start planning. Smart planning for your retirement will ensure that when you do retire you can maintain the standard of living you have become used to.
While you may be entitled to a State Pension at retirement, the age at which you can access this pension has been increased: it will not be paid until age 68 for people who were born on or after the 1st of January 1961.
And even if you do get the full State Pension, at €230 per week currently, it’s designed to cover the basic necessities of life only and will often be a sharp drop from your annual salary.
Bearing this in mind you will need a plan to supplement the State Pension payment. In particular, if you are self-employed or working for an employer who does not include you in a pension scheme for retirement benefits, it is up to you to make additional financial provisions for your retirement.
Pensions are a complex financial product and it is important to get your information from an experienced advisor. Connolly McCabe FB Ltd have many years experience helping clients save for their retirement and ensuring that they have the most suitable pension.
A pension is one of the most tax efficient ways to save. You get tax relief on your saving at the marginal rate, funds accumulate tax free until retirement and you get a percentage of your fund tax free at retirement. Planning for your retirement by putting in place a pension might seem like a complicated task, but the earlier you get started the better, as you will have more time to make contributions and more time for your pension fund to grow in value.
There are plenty of options for you to choose from and we at Connolly McCabe FB Ltd are here to assist you in making the right decision.
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Executive Pension Plan:
Executive pension plans are tax efficient retirement products for business owners and company directors/ employees. It is a Revenue requirement that your company invests in your executive pension and you can make contributions if you wish. Both you and the company benefit from tax reliefs on contributions to your pension and your money grows tax free until you retire. At retirement you will have the option to take a lump sum of up to 25% of your fund or you may take a lump sum of up to one and a half times your final salary at retirement. You can then decide to take your remaining benefits in a number of ways.
Personal Pension
Personal pension plans are available to the self-employed or to anyone who earns an income but is not a member of an employer pension plan. The amount you can contribute into a personal pension plan and benefit from tax relief at your highest rate depends on your age and net relevant income.
Personal Retirement Savings Account (PRSA)
A PRSA is a flexible and transparent retirement product available to anyone regardless of your employment status. They are designed to give people a flexible way to save for retirement and are owned by the individual. The PRSA can be transferred from one employment to another.
Contact us to arrange an appointment with one of our Financial Advisers.
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