At First Choice Financial Services DAC we offer a wide range of services on retirement. The current Old Age Pension which will kick in for some at age 65, others 66 and for those who are under 50, it may not be until age 68. The current Old Age Pension is in the region of €230/week and this is an entitlement for the majority of people who qualify.
The standard of living which you hope to enjoy in retirement may largely depend on the choices you make before you retire. As you are approaching retirement, there are some very important decisions that you have to make, especially in the current economic climate. Basically, making the right decisions now is the key to financial security in retirement.
Retirement planning becomes a top priority as we get older, with people wanting to know how to invest their money to build a reasonable fund for their retirement.
Looking in detail at the differences between those adults receiving financial advice on a regular basis (at least once a year) and those that don’t, a number of significant advantages are apparent. Importantly, the value of their pensions was 75% higher and they also held more than twice as much in savings and investments.
Source: The Value of Advice Ireland 2013 PIBA / Standard Life
The worry is that because the OAP is funded from current state income (there is no fund as such) that the state may not be able to pay these pensions at this level in the future.
On the assumption that people are entitled and will receive a base line pension (€230/week) the issue then is whether this is sufficient to live on.
Any excess income must be derived from a menu of options:
- Sale of Business
- Income from Investments
- Family Contributions
- Part-time work
- Sale of assets
- Occupational Pension Scheme
- Personal Pension Plans
Putting a plan in place may entail using some or all of the above menu and as retirement planning advisers we can put the structures in place to ensure you meet your goal (whatever that may be).
We will provide retirement and tax advice to you that best suits your employment type whether it be:
- Self Employed
- Public Sector
- Company Employee
- Company owner/director
- An Independent Review Of Your Existing Pension Plan
- To Review Your Financial Position And Find Pension Plan To Suit Your Needs
- To Help Find Out What You Need For Your Retirement
- Assistance In How To Manage Your Pension Plan
- Assistance In Maximising Your Income In Retirement
Your Retirement could last a long time – 20 years wouldn’t be exceptional
But will you have enough money for your later years?
The research Aviva has conducted into Ireland’s pension position indicates that as a nation, we are not saving enough for our retirement. Aviva has developed Mind the Gap – a simple calculator to enable you to work out your own retirement position.
What should you do?
By answering a few simple questions, you can get an indication of your own individual pension gap – and what measures you can take to address them
Will you have a Pension Gap? Click here to find out http://www.mindthepensiongap.ie/#page0
At pension age you have many options e.g.:
- You may have a pension for the rest of your life, the amount depending on the size of your accumulated fund
- You may take a reduced pension and a lump sum tax free equal to 1 ½ years’ salary
- You may take a tax free lump sum – 25% of fund tax free balance into own Approved Retirement Fund
- Options are dependent on your pension plan
This is general information – Please contact us for tailored individual illustration.
The Maximum Contributions allowed by Revenue are shown below.
All contributions invested in the plan are free of any income tax subject to revenue limits in relation to your salary.
30 15% of salary
30-39 20% of salary
40-49 25% of salary
50-54 30% of salary
50-59 35% of salary
60 + 40% of salary
Maximum tax relief is worth considering when taking out a pension.
Please note these guides are not a replacement for professional financial planning advice. Please contact a member of our staff for comprehensive advice on your requirements.