Why save for retirement?
There are numerous reasons why you should save for your retirement but the single biggest reason is undoubtedly the tax reliefs you can avail of once contributing to a pension.
- You can receive tax relief at your marginal rate of tax on the amounts you put into your pension. If you are a higher tax rate payer, for every €10 put into a pension you will receive back €4!
- The fund itself can accumulate funds tax free thereafter over a considerable number of years and;
- at retirement age you are able to take a tax free lump sum of 25% of your fund up to a total of €200,000.
Another reason for retirement planning is that most people will suffer a considerable drop in income once they reach retirement age. Effective retirement planning will allow you to maintain your standard of life for a longer period of time. Most people will not be able to live a comfortable life on the old age pension alone and that is why it is necessary to confront this issue today.
Directors or Self employed:-
If you are self-employed or a company director you may have more retirement funding options. An Executive Scheme may help you fund more into your pension and is a tax efficient method of extracting wealth from your business.
Contact us for details about our pension planning options, leave a message for our team, using the below form.