Do you realise that if you were born after 1961 you will not get your state pension in Ireland until you are 68? Also, did you know that at current rates the state pension is about 1000 euros a month? Could you survive on that amount? This is estimated to be about one third of most people’s income from their jobs. If you have a few years left before retiring you may be thinking the state pension will have increased by the time your turn comes around. You are probably right, it will have increased, but so will the prices of all our everyday needs, such a food and utilities, and you will be no better off.
Do you have plans for retirement? Are there things you have been putting of until you do not have to go to work every day? Is there a new hobby you want to take up? Do you plan to travel? If the state pension is going to be your only income it will be hard to manage financially, let alone follow your dreams.
You may be in a job that provides a pension when you retire, and if this is the case you have no need to know about the best pension plans Ireland has to offer. In fact, if you are lucky enough to be in this sort of job, you cannot take out a personal pension plan as well.
Where To Start Finding The Best Pension Plans Ireland Has
Retirement planning is vital if you don’t want to have to keep counting your money before you spend any. Private pension plans can be the key to your financial security once you have finished work. An added bonus is that you do not have to wait until you are 68 to benefit from them. You can start taking your private pension when you are 60, but cannot leave it later than when you reach 75.
However, the next thing to be looking at is where to find the best pension plans Ireland has, as you want to be secure in the knowledge that you have opted for the best one for you.
They can vary a great deal. Some have benefits for spouses and children after your death, and some pay a bigger pension but it dies with you. Some will allow you to make monthly payments and add another one-off payment if you are able to, usually at the year-end.
You should not go directly to the pension plan providers as they are always going to tell you theirs are the best pension plans Ireland has to offer. You need to seek independent advice where you can discuss all of your future financial planning, and know that you will get the help you need.
The financial advisors you talk to should be qualified in what they do, otherwise it is against Irish law for them to be advising you. Never be afraid to ask to see his or her qualifications, and if they refuse to show them to you, steer clear and find someone else.
There is more than one qualification they could have. If they have QFA after their name it means they have completed the Professional Diploma in Financial Advice. QFA simply stands for Qualified Financial Advisor. This is deemed to be the Minimum Competency Code requirements designated by the Central Bank of Ireland. It is not just a case of them passing exams. They have to constantly keep up to date with any changes in the rules, which is known as Continuing Professional Development.
Of course, there are other qualifications they can have, but they must be a QFA to be able to advise you about the best pension plans Ireland has to offer. In fact, many QFA’s go on to learn more. They could be a Specialist Investment Advisor (SIA), or a Certified Financial Planner (CFP). Some of them have degrees in finance products before they start in the financial advice field, but they still have to complete the QFA qualification.
How much Do The Best pension Plans Ireland Has Cost?
You should never think of a pension plan as a cost, it is an investment for your future. The amount you choose to invest each month is your decision, although there are legal limits you cannot exceed depending on your age, and no one is allowed to accumulate a pension fund of more than 2 million euros.
There are tax benefits relating to personal pension plans. You will get tax relief at your marginal rate of tax and your fund will grow tax-free. When you retire you can take a portion of your fund as a tax-free lump sum, up to a limit of 200,000 euros. You can take up to a further 300,000 euros at a tax rate of just 20%.
Any life assurance cover attached to the pension plan also attracts tax relief at your marginal rate.
Where To Go Next
If you are serious about finding the best pension plans Ireland has and would like more information, chat with one of the experts at Masons Wealth Management. We have been helping clients for over 30 years and have the experience, knowledge, and expertise to give you the best advice.
We provide a friendly service that is tailored to your needs and will help you to come up with a plan to achieve your aims for retirement. We can even help if you have already retired.
Call us today. You will not be putting yourself under any obligation but may just find it is the most profitable phone call you have ever made. The number to ring is 01 969 5786. If you have questions you would prefer answered by email, then just message us at [email protected] or complete our contact on our website. We are based in Lower Leeson Street, Dublin, and our team are here to help you in any way they can.