My retirement is getting closer

In the 10 to 5 years leading up to accessing your pension benefits it is wise to have a yearly review to ensure your plan remains on track to meet your income needs and tax free cash planning needs.

Pensions can seem complicated and savers usually have many questions.

Keep a close eye on your pension plan

How will I access my pension fund?

You will need to decide on how you intend to access your pension savings.

A number of options are available to you and it is very important to understand what these are.

For example, does your existing plan have protected benefits, such a guaranteed income for your lifetime? We can explain all the pro’s and con’s that apply to each option.

Everyone is different and we can help you to decide on the best option for you.

 

What are my options?

The option that is right or you depends upon many factors, not limited to for example;

  • the size of your fund

  • the level of income you will need

  • the value of your other assets and other sources of income

  • whether security or investment growth is more important to you.

  • Your risk preference, your capacity to loss and your investment goals.

  • estate planning and passing on your assets tax efficiently to the next generation

  • your current health

Difference between an;

Invested into the right funds for you?

You may be invested into a Default Investment fund or a fund of your own choice.

Either way, you will need to review your fund(s).

Suitability of certain funds changes over time, and its important you understand the the risk category of your fund.

 

Maximising your pension investments

Putting more money into your pension before retirement can be very tax efficient.

If you are over 60 years, you can invest up to 40% of salary/net relevant earnings. Generous revenue maximum limits apply.

As you get closer to retirement age the limits increase. So there is scope, provided additional investments are affordable.

For example, if you are 60 and earning EUR 60,000 per annum you can invest up to EUR 24,000 gross (40% of your salary) into your pension plan. After tax relief, it will only cost EUR 14,400

Tax relief is not automatically granted. You must apply to and satisfy Revenue requirements.

Research has proven that those that engage with a professional advisor at least once a year are more financially confident.

  • More savings and investments

  • More likely to have a retirement plan

  • More financially protected in the event of illness, accident, diagnosis of a specified illness or even death

  • More secure and confident about their future

  • Higher annual savings, larger pension funds, wealth growth, adding considerably to your financial well being and helping you achieve your goals.

Source; Ireland (Standard Life report), UK (Unbiased/Standard life report), Australia (KPMG Econtech report) and Canada (CIRAMNO report).