A pension is an income that you “save up” during your working life in order to ensure that you can have an income in retirement that will allow you to enjoy life.
The State Contributory Old Age Pension is payable from age 67. Provided you have the necessary PRSI payment the pension currently provides approximately €1000 per month per individual.
In order to supplement the state pension the revenue provides generous tax reliefs to people who wish to also fund private pensions.
All categories of workers in the state are entitled to fund private pensions for instance :
- Self Employed – Personal Pensions
- Company Director – Executive Pensions
- Employees – Group Pension Schemes (Now mandatory)
- All others – PRSA Pension Plans
- Retired Couple
TAX RELIEF
Tax relief is a major incentive for people to start the pension process of saving for retirement. The relief is available at the highest marginal rate of tax that you pay. The amount of your earnings that you can contribute to your pension plan and gain relief on is dependent on your age. For instance if you are aged between 40-49 you can contribute up to 25% of your earnings and claim full tax relief (up to a salary cap of €115,000).
Tax free lump sum allowances on pensions are up to €200,000 in your lifetime, this adds to the advantages of planning for your retirement. So don’t wait, the earlier you start the more you will have.
Start your retirement journey by contacting us today.
