Starting your pension investment
The ‘numbers’!
I am often asked to provide the 'numbers' why starting a pension earlier makes more sense than waiting.
Often, there is no real reason why new customers haven't started a pension plan. Yet, when a new potential pension starter is shown these figures the need to at least start a pension becomes clearer. These ‘numbers’ may prompt you to think again and maybe make contact with us. If so, we would be delighted to hear from you.
So let's start with an example;
If Rachel was prepared to invest EUR 5,000 annually, with projected 5% growth per annum , what might her fund be worth at age 65 based upon different start dates, all other things equal? And, of course assuming affordability from age 24 onwards.
If Rachel was a 40% tax payer an annual investment of EUR 5,000 would cost net EUR 3,000 after tax relief (and EUR 4,000 if a 20% tax payer).
- starting at age 24; EUR 639,199
- starting at age 35; EUR 353,804
- starting at age 45; EUR 178,96
- starting at age 55; EUR 71,034
So there you have it. Definitely is a good thing to start earlier, if you can.
One of our other blog posts discusses investment choice - another critical variable.
Want to know more? We are available to discuss your options, and we look forward to hearing from you.
Our job is to help you choose a product and structure that will help you meet your goals.
telephone | 091441188 and/or email | office@nelsonlife.ie
RETIREMENT & PENSIONS | INVESTMENTS | FINANCIAL PLANNING | LIFE INSURANCE
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WARNING: Past performance is not a reliable guide to future performance. WARNING: The value of your investment may go down as well as up. WARNING: You may lose some or all of the money you invest. WARNING: These funds may be affected by changes in currency exchange rates. WARNING: If you invest into this product you will have access until you retire (Pension Products). WARNING: The above content does not constitute investment advice, as it does not take into account the investment objectives, knowledge and experience of financial situation of any particular person. Prospective investors are advised to make their own assessment of the information contained herein and to obtain professional advice suitable to their own individual circumstances. WARNING: The information contained in this document is based on our understanding of current tax legislation and the current Revenue Commissioners interpretation thereof and is subject to change including retrospectively without notice. This is intended as a general guide only and is not a substitute for professional tax, legal and investment advice.