Useful Information

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Useful Information

What is a pension?

It’s the money that you’ll live on once you stop working. It basically replaces the salary or wages that you earned before you retired. It is a long-term savings plan that helps you save for the future.

A pension plan allows you to make regular payments and/or transfer one-off lump sums into a fund for retirement. The amounts saved into your pension are called ‘contributions’.

What is a pension plan?

It’s a type of saving account, but one that gives you important tax breaks. You can use it to build up your money and give yourself an income after you stop working. A pension plan is a long-term arrangement, so you can’t dip into it before you retire.

When is the right time to start a pension?

The money you save into your pension plan is invested so that your fund can grow over time. Therefore, the earlier you start a pension plan, the more time your retirement fund will have to grow and the bigger your pension pot will be.

Why do I need a pension plan?

When you stop working, your pay will come to an end but unfortunately, those bills will just keep coming. Unless you win the lottery or inherit a large sum of money, your pension will almost certainly be your main source of income after you retire.

How much should you put into your pension?

How much you should contribute to your pension will depend on your specific circumstances. When deciding how much to save into your pension, it’s important to think about how much you can afford, but also to consider how long you’ve got until retirement and what kind of income you think you’ll need during your retirement.

Our Pensions Calculator can help you to find the desired income and how much you need to save.

Tax relief on pension contributions

Unlike a regular savings account, money invested in your pension can earn important tax breaks. And when you retire and look for access to your fund, the benefits of your pension can be available in a tax efficient way.

How do I get started?

Let us help you to find the best way to enjoy the lifestyle you desire. We are ready. Contact us on 1890 300 303 for more information.

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Important Assumptions

For the purpose of determining the term over which pension contributions are made, we have assumed your birthday was exactly six months ago.

If your target retirement age is lower than the age at which the Social Welfare pension commences (age 68 if you are born on/after 01/01/1961, age 67 if born before this date but on/after 01/01/1955 and age 66 if born before 01/01/1955) the calculations allow for funding for this gap, in addition to the cost of the annuity.

You are entitled to a full Social Welfare pension of €248.30 per week as at March 2019 which is assumed to increase by 2.5% per year.

You are saving for the difference between the Social Welfare pension and your target monthly income in retirement.

We have allowed for inflation of your target monthly income of 2.5% per annum between now and your retirement date.

Any other private pension provision you may have in place has not been taken into account.

Your monthly pension contribution increases by 2.5% each year up until your retirement age and is invested in a pension plan with an annual management charge of 1% and a 5% charge on each contribution, in line with the Standard PRSA fees and charges maximum limit.

A Gross Investment Return of 4.2% per annum on your savings. This is not a forecast because the value of your investment may grow at a faster or slower rate than assumed and the value of your investment may be expected to fall from time to time as well as rise.

On retirement you purchase an annuity which escalates at 1.5% each year, has a 5-year guarantee and is payable monthly in advance. The annuity rate assumes a post retirement interest rate of 2% per annum and no spouse’s pension. The actual annuity rate will depend on the selection of dependant’s pension, guaranteed period and the escalation rate, as well as interest rates prevailing when the annuity is purchased.

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