Pension Services
Planning for retirement is a vital but often neglected aspect of financial planning. It is estimated that 45% of Irish workers fail to make any pension provision beyond the small state pension.
The State Pension in 2009 is €11,976 or €230.30 per week. The average industrial wage in Ireland in 2009 is €32,000 per annum. This is a substantial difference, which means that it would be impossible to maintain current living standards in retirement without a pension fund to bridge this gap.
One of the major attractions to contributing to a pension is the tax relief allowed on personal contributions (within certain age related limits) at your marginal rate of tax. So every €1 you invest will cost you 80 cents or 59 cents depending on your marginal rate of tax and that’s ignoring PRSI and Healy Levy savings. In other words, if your paying tax at 41%, for every 59 cents you contribute the state contributes 41cents on your behalf.
You may also be entitled to claim relief from PRSI and the Health Levy. For example if you’re paying tax at the higher rate of 41%, paying 4% PRSI and 4% Health Levy, every €1 you invest will cost you 51 cents.
The tax incentives available on pension contributions and the wide range of investment options from no risk to medium and high-risk funds, means that making a contribution to a pension to fund for your own retirement is an attractive option.
The most valuable benefit you will receive from making a pension provision is the income it will provide you with on retirement. The fund you build while you are working will be an invaluable source of income to you when you are no longer willing or able to work.
Please contact us today for your free assessment of the pension planning opportunities available to you.
Warning: The value of your investment may go down as well as up.
Contact us today for all your enquiries
Frequently Asked Questions
I am a Company Director owning 80% of the company shares, what type of pension is best for me?
As a director owning more that 50% of voting shares you can avail of an Executive Retirement plan where your company can put in a chosen amount and treat that contribution as a tax deductible expense, thereby reducing the company’s Corporation Tax. Not only that but all growth within your plan is tax free and you can draw 25% of your fund as a tax free lump sum on retirement. In addition you have total flexibility to let the pension provider manage your pension fund or to manage it yourself of even a combination of both.
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PSC Wealth Plus Ltd is regulated by the Central Bank of Ireland