A pension is simply a long-term savings plan, with tax relief on the money you save. With a pension the money you save goes into a retirement fund. The fund is invested and its aim is to grow over the years so that when you retire you can afford to live comfortably. The amount of tax relief you can get depends on your age and the amount you earn.
This Pensions video was provided by Zurich Life Pensions
Starting a pension early makes sense, as this money can grow over time. Every 10 years that you delay saving means you double the cost of how much you need to put away to get to the same place when you retire. Saving for retirement is important. People are living longer and leading more active lives in retirement. It is now more important than ever for you to think about where your income will come from when you retire.
The state pension is currently less than minimum wage. If you thought about spending your retirement enjoying your life and doing some of the things you had put off due to work and family commitments, then you will need more than that.
Even if you are part of a defined benefit or defined contribution plan through your employer you may be able to maximise your contributions or may wish to consider additional voluntary contributions. We are happy to review your current plans to help you assess if your benefits are suitable and match your needs.
We help guide you through the process and help you meet your financial goals.
Retiring does not have to be daunting and you shouldn’t have to worry about what to do with your pension fund. It is important to take time, get advice and consider your options. There are a number of options available when you retire and they will depend on your personal circumstances and the type of pension you have.
We advise you on what you are entitled to do in regards to your options as follows:
- Taking a lump sum
- Purchasing an annuity
- Reinvesting your funds
- Leaving funds in PRSA
Contact us today for more information or to arrange a consultation.