There was a lot of media reporting on the National Pension Framework published by the Taoiseach, Minister for Finance and Minister for Social and Family Affairs during the week. New Ireland Assurance have a good summary document here.
While a lot of the proposals are a few years off the report does highlight the importance of pension planning. There are currently 1 million people working who have no pension and will have to survive on the state pension which at the moment is €230 per week.
Based on the current revenue rules it is possible for an individual to benefit from tax relief at 49% (Income Tax, PRSI and Health Levy) on pensions contributions providing their income is being taxed at the higher level of taxation. This means that a contribution of €600 per month will only cost €306 out of net pay. A contribution of €600 gross from age 30 to age 65 will result in a pension fund of * €1,400,000 at retirement which will supplement the state pension.
SmartQuotes.ie offer Personal Pensions, PRSA’s, Executive Pensions and Group Pensions with high allocation rates and low charges. SmartQuotes.ie work with insurers such as Zurich, Canada Life, Aviva, New Ireland, Irish Life and Friends First giving clients fantastic choice of funds and fund managers.
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* Assumes 5.5% growth and premiums increasing at 5% per annum