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In your 30s? It’s not too early to start Planning for Retirement

Time to take control…

Most of us spend little or no time thinking about our retirement when we are younger, but that’s the very time to take action. Ask yourself, how long do you want to work for? The earlier you start, the more choices you have. Right now, you are in a unique position to chose to retire early, at say 55 or 60. This is because you have time on your side, time to take action and plan ahead.

One more reason to start saving today

Currently one of the best things about saving for your retirement is the generous tax relief available., up to 41%* for higher rate tax payer. And the longer you save the more you will benefit from Government tax breaks. So start or top-up your retirement savings today.

 

Did You Know?

If you’re in your 30s, you can save up to 20%* of your income into a pension and claim full tax relief!

 

Member of your Company Pension Plan? If not it’s like saying ‘No’ to a salary increase!

If your employer has established a company pension plan and you haven’t joined it, you could be missing the opportunity to have 3 people, (your employer, the Government and you) pay into a savings plan with only one beneficiary – you! So three into one does go!**

Ask your employer now about the pension benefits you’re entitled to.

 

TIP

Saving even a little now may make a big difference later on.

A person aged 30 who saves €145 per month into a Retirement Savings Plan until age 65, could have a pension fund value of €150,000*** at age 65.

If they delayed saving into their pension until age 45, they would have to save an estimated €392 per month into a Retirements Saving Plan until age 65 to potentially achieve the same pension fund value of €150,000*** at age 65.

So how much should I save now for my retirement?

This depends on a number of factors such as:

- Your age now

- When you’d like to retire

- What kind of lifestyle you’d like to have in retirement

- Any pension arrangements you already have in place (from previous or current employers)

- How much you can afford (bearing in mind that current tax relief can effectively can cut the cost of your monthly savings by almost half).

Did You Know?

The State Pension payment is currently just €230 per week, and will only be payable from age 68 for those now in their 30s. It is currently estimated that there will be just two workers to support every pensioner in 2050, down from 6 workers today. 

(State Pension as at September 2011 / Central Statistics Office 2011)

 

*It is important to note that tax relief is not automatically granted, you must apply to and satisfy Revenue requirements. Revenue terms and conditions apply.

**Under an employer sponsored occupational pension arrangement, your employer has to contribute, you can contribute, as will the Government, with generous tax relief incentives. It is important to note that tax relief is not automatically granted, you must apply to and satisfy Revenue requirements. Revenue terms and conditions apply.

***Please note that these figures are intended for illustration purposes only. 419 regular contributions are paid and the investment term is 34.92 years. An investment growth rate of 6% per annum is assumed – this is not a forecast, as unit prices can fall as well as rise and could grow at a faster or slower rate than assumed.  Contributions will remain level. This quotation assumes continuation of current expense charges, 5% premium charge and 1% annual management charge.

 

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