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Drumlin Financial Services Limited trading as Key Financials is regulated by The Central Bank of Ireland
The State currently provides two types of retirement pension: State Pension (Contributory) and State Pension (Non-Contributory). The State pension age is currently age 66.
The State pension age was due to rise to 67 from 1 January 2021 however, the government has deferred this change and a Pensions Commission has been established to consider the change to the State pension age, among other issues such as sustainability and intergenerational fairness.
State Pensions are paid from the taxes government take from current employees. Due to the ageing population in Ireland this will mean less people working and more people receiving state benefits: In 2010 there was 6 People Working for Every 1 Retired Person In 2030 there is estimated to be 3 People Working for Every 1 Retired Person In 2050 there is estimated to be 2 People Working for Every 1 Retired Person (Source National Pensions Framework, 2010) This will put more pressure on the State Pension scheme and is one of many reasons to invest in a private pension.
Quite simply, for the majority of people relying solely on the state pension contributory or state pension non contributory will be a substantial drop of income on retirement.
Successive governments have introduced generous tax reliefs to encourage us to supplement our state pension entitlements as follows:
There are two tax benefits of having a pension
1. Contributions made to your pension qualify for Tax Relief. The government actively encourages you to invest in a pension by offering tax relief.
2. The investment returns in your pension will also accumulate tax free. Compare this to a Deposit Account where the current Tax Rate is 41% on interest. During the lifetime of a pension this will make a large difference to your Pension Fund. With a large range of options available for Pensions in Ireland, a financial broker will analyse your needs and research the market to find the most suitable pension for you. Our Qualified Financial Advisers will provide you with Impartial Advice on Pensions from a range of Providers. It is important to regularly review your pension to ensure it continues to meet your needs and that your pension is performing.
Key Financials can provide a Free Pension Review, even if you took your pension out through another provider, to ensure that:
Key Financials provides advice on the following Pensions:
We also provide advice on all your Post Retirement Options including:
The rules for your pension at retirement can seem confusing for a lot of people but by using our experience and technical knowledge we are able to advise you on the options available to you and the implications of each option. It is extremely important to receive Independent Advice when you are retiring to ensure that: