Have you put your pension planning on the long finger, or think the State Pension will be enough to support you in your retirement?
According to Irish Life, 90% of people in Ireland are not on track with their pension savings.
Given the State Pension was not designed to support the lifestyles many of us look forward to in retirement, where travel, leisure activities and meals out are a prominent feature, post-work life for many Irish retirees could be looking a little bleak.
Still not convinced? Consider this:
- The long-term viability of the State Pension is under threat with the ratio of employees to retirees reducing from 5:1 to 2:1 by 2050.
- People born after 1961 won’t receive their state pension until they turn 68.
- Any savings you have will need to last 20 years in retirement for women aged 66, and 17 years for males when they retire based on current mortality rates.
- People paying income tax at the higher rate of 40%, effectively receive a 66% increase on their pension contribution when invested, i.e. €60 paid is equivalent to €100 invested.
- In addition to tax relief on contributions, people with well-planned pension funds can avail of a tax free retirement lump sum up to €200K.
Don’t leave your pension planning until it’s too late.
Planning your retirement gives you the freedom to choose how you live your life post-work rather than being hamstrung by financial concerns.
Why not give our qualified financial advisors a call now to find out how you can get your retirement planning on track? Call us on 091 670 123 today.