Pensions & Retirement Planning
- Pensions & Retirement Planning
Contact Us
- Aeta Place. Gortnakesh, Cavan, H12 K4C8
- 42 Dublin St, Monaghan, Co.Monaghan
- +353 (49) 432 6841
- info@keyfinancials.ie
Pensions & Retirement Planning
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.
- State Pension (Contributory) is payable at age 66 to people who have satisfied certain PRSI conditions (currently the maximum rate is €248.30 per week) and
- State Pension (Non-Contributory) is payable at age 66 as a means-tested pension for those who do not qualify for the State Pension (Contributory) based on their PRSI contribution record.
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:
Tax Benefits
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, an independent 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 Independent 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 the best it can.
Pension Review Service
Key Financials can provide a Free Pension Review, even if you took your pension out through another provider, to ensure that:
- The Fund Performance on your pension is good
- The charges on your pension are not excessive. This is particularly relevant with older plans or plans taken out through banks or tied agents.
- Your pension is invested in funds that are appropriate for your age and risk profile.
- Your contributions are adequate in order to achieve your target retirement plans.
- Your contributions are adequate in order to achieve your target retirement plans.
Key Financials provides advice on the following Pensions:
- Personal Pension Plans
- Executive Pension Plans for Company Directors
- Group Pension Scheme
- PRSAs
- Buy Out Bonds (also known as Personal Retirement Bonds)
- Pension Term Assurance
Retirement Options
We also provide advice on all your Post Retirement Options including:
- Approved Retirement Funds (ARF) & Approved Minimum Retirement Funds (AMRF)
- Annuities
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:
- You receive the largest Tax Free Lump Sum Available to you
- Get quotes from all the providers in the market not just your current pension provider
- You are made aware of all the options available to you