In the current climate we have decided to post 10 reasons why it is important to establish a pension plan. They are as follows:
- You need an income in retirement: People last over 30 years in retirement these days and therfore you need to make an allowance for a pension!
- Tax relief on your contributions: You can still get relief at your marginal rate of tax. For some people that is 41%!
- Tax free growth on your pension savings: Your pension grows tax free, no DIRT on deposits or other taxes!
- Tax free lump sum payment in retirement: You can take up to €200,000 as a tax free lump sum!
- Access to safe pension investment options: You can now invest in capital guaranteed pensions that aim to meet your needs in retirement!
- Enjoy the benefit of regular investing: If you invest on a regular basis you constantly purchase units within a market that rises and falls over the course of your pension investment term. This works out well in the long term.
- Investment markets represent good value for money in the current climate.
- The earlier you start on the pension ladder the cheaper your pension will become
- Its likely that you will need a private pension now given that the government are increasing the retirement age for your state pension
- A pension is always the smarter way to save!