You have worked hard over the years, and now you may be thinking about the biggest holiday of your life – your retirement. Your financial priority now should be to maximise the tax benefits you can claim from your earnings, for the rest of your working life.
Did you know?
If you’re aged 50 – 54, you can save 30%* of your income into a pension and claim full tax relief! If you’re aged 55-59, this tax free savings allowance will increase to 35%*!
*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.
One more reason to start saving today…
Currently one of the best things about saving for retirement is the generous tax relief available, up to 41% for a higher rate tax payer.
The State Pension Age is going up…
The age at which we qualify for the State Pension is set to increase for all those currently in their 50s. If you are 50 today and planned to retire at age 65 then you may be surprised to hear that the Government has proposed to increase the State Pension payment date to 66 from 2014 and to age 67 from 2021.
However, if you plan on retiring early , at say age 60, you could have a gap of 6 or 7 years where you need to have an alternative income. So, you’ll have to live off your personal savings, if any, before your State Pension payment kicks in.
The good news is that by putting plans in place now, you can bridge this financial gap. So, please get in touch with us at Inverdea Financial Services where one of our team will be able to give you impartial advice. Saving what you can afford now, will give you greater control over the age at which you decide to retire.
Did you know?
90% of workers wish to retire before age 68, however 6 in 10 realise that they will have to start or top up their pension savings now in order to achieve this goal of early retirement.
Source: New Ireland Pension Research