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To Start Your Pension Now

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Planning for retirement is a journey that demands foresight and careful consideration. In today’s dynamic economic landscape, securing your financial future requires proactive steps, and one of the most fundamental decisions you can make is to start a pension.

With longer life expectancies, evolving pension landscapes, and the importance of financial independence in retirement, there’s never been a better time to embark on your pension journey. Let’s explore ten compelling reasons why starting a pension should be at the top of your financial priorities.

Top 10 Reasons to Kickstart Your Pension Journey

On average, we’re all living longer

Thanks to healthier lifestyles, plus advances in medical treatments, people are living much longer these days. So, to make sure your money doesn’t run out, you’ll need to build a bigger pension fund.

Could you survive on the State pension alone?

At just €265.50* per week, your State pension may not be sufficient. So, unless you have an additional income when you retire, you may not have enough money for your retirement needs.

The taxman will give you a helping hand

For every €100 you pay into your plan, the taxman will currently give you € 20.00 back, so it only costs you €80.00 If you’re a higher rate taxpayer, it’s an even better deal. You’ll currently get €40.00 back, so each euro you pay into your plan will only cost you €60.00 These amounts are based on income tax rates of 20% and 40% (as of March 2024).

Your payments can grow tax-free

The money in your pension plan can currently grow tax-free – so it should have the potential to grow faster than in other types of savings plans that are subject to tax.

Delay costs money

Providing yourself with the retirement income you’ll need means building up money in your pension fund. But, the longer you wait before starting your plan, the larger the payments you’ll need to pay.

Potentially benefit from the ‘downs’ as well as the ‘ups’

Your regular contributions can benefit from periods of stockmarket volatility – particularly in the early years. When investment values are low, you can buy more units with your contribution than you could have when unit prices were higher. If the market subsequently recovers, then all these units can benefit from this recovery – making stockmarket volatility work in your favour.

If you move jobs, you can take your plan with you

If you change jobs, you can take your pension plan with you.

How else can you provide for your old age?

Any money paid into a pension plan may be eligible for tax relief. No other form of saving qualifies for this benefit. A pension plan really is the most tax efficient way to save for your old age.

It’s never too late

Even if you’re approaching retirement, it may still be worth paying money into a pension plan, as you’ll be setting aside something for the future.

You can draw a tax-free cash sum at retirement

When you retire, you can currently take part of your pension fund as a tax-free lump sum (subject to a lifetime limit of €200,000). This can enable you to do those things you’ve always promised yourself.

If you already have an existing pension, it’s important to have a regular review to ensure you’re up to date with the latest charging structures and investment risk.

Charges have changed significantly over the last 10 years, you don’t want to be paying too much to your pension provider. At Malahide Insurance Shop we offer pension reviews to ensure you have the best charging structure for your needs. We’re confident we can beat your current structure and save you money, so book in for a review with us today to secure your financial future.

Malahide insurance shop is regulated by the Central Bank of Ireland working with Zurich life, New Ireland, Aviva life, Royal London and Irish Life.

Malahide insurance shop is a member of Brokers Ireland as a financial broker.