What’s more, Ireland is facing a potential pensions time bomb, as more and more people each year are expected to be relying on the State Pension. Irish people are living longer in retirement and it is expected that by 2050 the ratio of people working to those in retirement will shrink from 6:1, to 2:12. These factors will have an impact on your income in retirement, so having your own retirement funding in place is a necessity now more than ever.
Often people think that pensions are confusing, but with the help of a Pension Adviser we can help you understand just what you need to do. As you’ll potentially spend a large portion of your life in retirement it’s important you think about how you’re going to fund it, especially if you feel that €230.301 a week falls short of what you’ll need.
A pension is basically a long-term savings plan that allows you to build up a fund which will help give you the freedom to live the lifestyle you’d like when the time comes to retire. Planning for your retirement is one of the biggest financial decisions you will have to make. Pension income in retirement is subject to income tax at your highest rate on withdrawal, Universal Social Charge, PRSI (if applicable) and any other charges or levies ("tax") applicable at that time.
Unlike other long term savings accounts, the lump sum you save through a pension may benefit from income tax relief3. If you're paying income tax, you may get income tax relief (within limits) on all your contributions from the time you start your pension, up to 41% if you're at the higher rate of tax or 20% if a standard rate taxpayer. So, saving for your retirement may cost you a lot less than you think. Tax relief is not guaranteed. To be eligible to claim relief, your income must be taxable either Schedule E or Schedule D (case I or II). To claim tax relief, you can apply to your Inspector of Taxes to adjust your tax credits. Contributions deducted from salary will receive immediate tax relief. If you are self- employed, you must include your pension contributions in your self assessment tax returns in order to obtain income tax relief.
You may already have a pension plan through work, you might have a personal pension or maybe you have no retirement provision in place yet. Meeting a Pensions Adviser can help you prepare and put a plan in place that suits your retirement planning needs for your golden years.
If you have questions about a pension, whether you already have a pension or not, a chat with an EBS Pension Adviser will give you all the answers you need.
During the meeting our Pension Adviser will ask you for information which will be used to make sure the recommendations made best meets your needs and goals. The aim of the review is to find out:
Where are you now?
We'll ask about your family situation, your home and your job. We'll also look at existing financial arrangements.
Where do you want to be?
We ask you to think about your pension goals, what outgoings you'll expect to have and what income you'll need at retirement to live the lifestyle you desire.
What's your attitude to different types of investment?
We'll get to understand your attitude to risk which will inform the investment styles and options that are recommended to you. Remember these will be recommendations only, based on the information you provide and the final decision about the make up of your plan is up to you.
Your Initial Recommendation
A personalised report will be drawn up outlining different potential options, before you make any decisions.
Your Personalised Report
After your review you will receive a personalised report outlining the recommendations made and the approach agreed or considered.
Pensions are provided by Irish Life Assurance plc
WARNING: The value of your investment may go down as well as up.
WARNING: This product may be affected by changes in currency exchange rates.
WARNING: If you invest in this product you may lose some or all of the money you invest.
WARNING: If you invest in this product you will not have any access to your money until age 60 and/or you retire.
1,2,3 Source: www.welfare.ie (September 2011)
Important Information: Your review will be carried out by a Pension Adviser. Pensions are long term savings plans from which the benefits can only be taken at age 60 and/ or retirement. EBS Limited (EBS) is a tied insurance agent of Irish Life Assurance plc for life insurance products.
Irish Life Assurance plc is regulated by the Central Bank of Ireland.