Whatever your age or circumstances, it’s always a good idea to plan for your retirement.
FBD Insurance have a handy 10 step guide as to why investing in a pension, no matter what your age, is a good idea.
- Save Tax
- On pension contributions
- On any investment growth
- On income in retirement (within limits)
- Almost 70%
Your income could drop by almost 70% in retirement as the maximum State Pension (Contributory) is €12,652 a year but the average wage is €38,594 a year.
- 30 Years?
You may need an income for up to 30 years or more when you retire. This could amount to as much as a third of your life, so it makes sense to save now.
- Age 68
If you do qualify for the State Pension of €12,652 a year, you could be 68 before you receive it as the qualifying age is changing from 65 to 68. The average wage is €38,594 so that’s a potential shortfall of €25,942 after the age of 68.
- Start Early
Starting pension contributions early can have a significant impact on your retirement fund.
Higher rate taxpayers can potentially benefit from up to 40% in tax relief on every €1 saved. A €100 contribution only costs you €60. If you pay tax at the standard rate, you can benefit from 20% tax relief.
A pension can give you access to a wide range of investment funds which can give your money potential for growth over the longer term.
- Maximum €200,000
At retirement, you may be able to take a retirement lump sum, tax free, subject to a limit of €200,000.
- Investment Choice
Choose from a wide range of investment funds from global investment specialists.
- Start Now
The sooner you start the better. Even if you’re older it’s not too late. You can claim tax relief on a higher percentage of your earnings, so there may still be time to catch up!
Warning: The value of your investment can go down as well as up. Warning: If you invest in this product you may lose some or all of the money that you invest. Warning: If you invest in this product you will not have any access to your money until you retire.