Welcome News for the Pension Sector in the 2010 Finance Bill. The 1% Levy issue which had created an element of uncertainty has been resolved. See this document (pdf)
The 1% levy will not apply on pensions contributions.
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SmartQuotes.ie offer a wide choice of pension options for clients with competitive charging and excellent client service assured. Why not contact us today for a free review.
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
Charlie Weston has an interesting piece on the possible introduction of mandatory pensions as part of a new Government Strategy on Pensions. It highlights the importance of pension planning. Did you know that for a net cost of €204 per month out of net pay a 30 year old could accumulate a fund of circa €950k at retirement?*.
The state pension is €230 per week which would be a very low level of income for a lot of people to live on in retirement. As we have an ageing population it is possible that the State may not have the means to continue this level of payment into the future making retirement planning more important. Pensions are a very tax efficient way to save for retirement.
SmartQuotes.ie offer low cost pensions with high allocations and low management charges. We also offer a fantastic service to clients to ensure they are kept appraised of the value of their pension on a regular basis.
* Based on tax relief at 49%. Retirement 65. Premiums Increase of 5% per annum. Growth of 5.5% per annum.
It was reported today that a typical pension fund could increase in value by 17% if the individual shopped around for better value (article here).
SmartQuotes.ie offer some of the lowest cost pension products on the market without having to compromise on quality of service and fund choice. Products from large insurers such as Aviva, Zurich, New Ireland, Friends First, Irish Life and Canada Life are offered.
SmartQuotes.ie offer up to 100% allocation of funds* so all your invested funds make it into your pension. We also offer competitive charging structures. SmartQuotes.ie also provides clients with quarterly updates on their funds performance keeping clients informed of their investment returns.
* subject to terms and conditions