At Pathway Financial Management, we guide you through the steps to secure a comfortable retirement. Our professional advice is clearly delivered and easy to understand, helping you make informed decisions about your financial future. Here’s how we can help:
These are employer-sponsored pension plans where both the employer and employee contribute. They are often set up by companies to provide retirement benefits to their employees.
Individual savings plans for retirement, suitable for self-employed individuals or those without access to an occupational scheme. These plans are set up by individuals with financial institutions.
Portable retirement savings accounts that you can carry from job to job. PRSAs are designed to be flexible and accessible, making them a popular choice for many.
Individual pension plans typically used by self-employed individuals or those in non-pensionable employment. RACs are set up with insurance companies.
Also known as Buy-Out Bonds, these are used to transfer benefits from a previous employer’s pension scheme. PRBs are ideal for preserving pension benefits when changing jobs.
Retail master trust pensions are tailored for senior executives and key employees, offering enhanced benefits compared to standard employee pension schemes. These plans are set up by employers and can include significant contributions from the company.
Contributions to pension plans in Ireland benefit from significant tax relief, making it an efficient way to save for retirement. Here’s how it works:
Tax Relief Rates: Contributions are eligible for tax relief at your highest rate of income tax, which can be 20% or 40%.
Example: If you contribute €200 to your pension, it effectively costs you €120 if you are a higher rate taxpayer (40%) or €160 if you are a standard rate taxpayer (20%).
AVCs are extra contributions made by members of occupational pension schemes to increase their retirement benefits. These contributions are voluntary and can significantly boost your pension pot.
Auto-enrolment is a new retirement savings system set to be introduced in Ireland by 2025. It aims to increase pension coverage by automatically enrolling eligible employees into a pension scheme.
Regularly reviewing your pension plan is crucial to ensure it aligns with your retirement goals and maximizes your benefits.
As you approach or enter retirement, understanding your options for managing your pension fund is crucial. Regular reviews in retirement to ensure your plan is still aligned with your retirement goals is strongly advised. Two common options are the Approved Retirement Fund (ARF) and an Annuity. Here’s a detailed look at each:
Approved Retirement Fund (ARF)
An ARF is a personal retirement fund where you can keep your money invested after retirement. You have the flexibility to withdraw from it regularly, providing you with an income.
An annuity converts your pension fund into a guaranteed income for life. This option provides financial stability and peace of mind, knowing you will receive a steady income regardless of how long you live.
A pension advisor is a financial professional who specializes in helping individuals plan and manage their retirement savings. They provide expert advice on the best pension schemes, investment strategies, and retirement planning options to ensure you achieve your financial goals.
The best time to start your pension is as early as possible. Starting early allows you to take advantage of compound interest, where your investment earnings generate their own earnings over time. This can significantly increase your retirement savings.
What Are the Benefits of a Pension?
A pension fund is a pool of money collected from pension contributions, which is then invested to grow over time. The fund is used to provide retirement benefits to its members. Pension funds can be managed by employers, financial institutions, or individual pension holders.
Next Step: Take the first step towards securing your financial future. Book a no-obligation, free discovery call with us today to discuss your pension and retirement planning needs. Let us guide you on your pathway to a comfortable and secure retirement.
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