Here at Inverdea Financial Services we are currently in, what the industry likes to call, ‘Pensions Season’ so here are three things we believe everyone should know about pensions:
1. Pension Investment Fund
Is your pension making YOU money? Do you know how your pension is being invested? Have you discussed your pension fund performance recently? You should have this discussion as soon as possible to see if your fund(s) is meeting your expectations.
2. Tax Relief
Make the most of generous tax relief….while it’s available. The tax relief you can claim from your pension contribution can be up as high as 41%, depending on your Personal Income Tax rate.
3. State Pension
The age at which you may qualify for the State Pension has increased! The age at which you qualify for the State Pension has increased to age 68 for all those currently in their 40s. So if you still want to retire at 65, you could have a gap of 3 years where you need to have an alternative income. Of course, this gap will be even more significant if you decide to take early retirement. That means you’ll have to live off your personal savings, if any, before your State Pension becomes available – if you qualify for it e.g. have paid the required level of PRSI contributions.
If you’d like more information please get in touch with us on (0404) 67123.