Your pension is an essential part of your financial planning. The tax relief and long-term nature of a pension make it one of the best retirement planning tools available today. Saving in a pension can result in a much higher value at retirement compared to saving or investing outside of a pension:
Contributions to a pension may qualify for income tax relief at your marginal rate. For each €100 contributed to a pension the net cost to you is €60 after tax relief. (This assumes a 40% marginal tax rate and that you have income that pension relief is allowable on).
Any returns on your pension fund will be added to your fund tax-free. Compare this to a deposit account where DIRT of 41% will be deducted from your interest each year.
At retirement, you can take a portion of your pension fund Tax-Free
At Lakeview our financial consultant can advise on the best options for your particular circumstances.
The aim of a Personal Pension Plan is to build up a lump sum of money that can provide you with an income in retirement. The value of the benefits payable to you depends on the level of contributions you have paid and the return achieved from the funds in your pension. In simple terms, the more you are able to contribute the bigger the pot of money and the greater the benefits in retirement. However, there are limits on how much you can contribute in order for it to be as tax efficient as possible. In general, people seldom reach these limits.
If you are a director of a company you have the option of setting up an Executive Pension Plan which offers greater scope to contribute contributions than a Personal Pension Plan. In most circumstances, the company makes the contributions on the executive’s behalf. However both options are available, i.e. that the executive can contribute personally or the company. Typically, retirement options, can be accessed from the aged of 60, whereas a tax-free lump sum is available to a person in retirement.
Warning: If you invest in this product, you will not have any access to your money until you retire.
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.