Why are Pensions in Ireland such an excellent investment vehicle to build up the funds which you’ll need for retirement?
Basically, the Government want you to save for your old age and they’ll incentivise your retirement planning with multiple tax breaks.
The Government will give you 3 tax reliefs that make investments made through a pension vehicle stand ‘head and shoulders’ above other investments of a similar type:
1. Tax relief on your pension contributions - (40% relief for higher tax payers & 20% relief for standard rate tax payers). In other words, you can claim €400 tax back for every €1000 in pension contributions you make if you are a higher rate income tax payer.
2. Your investment fund grows tax free all the way up to retirement - Other investments incur taxes either on cashing them in or after a specific amount of time (depending on the investment type). Pensions grow tax free!!!
3. Tax free lump sum at retirement - You can claim a tax-free lump sum of up to 25% of your pension fund up to a maximum of €200,000.
If you would like to know more, or if you would like assistance setting up a pension or advice with any previous paid-up pensions with ex employers or even your current pension, please do not hesitate to contact me on the details below
I look forward to helping in any way possible going forward and thank you all for your continuous support.
Danny Coad QFA
Tel: 0862422441
Tel: 00353862422441 (If contacting from abroad)
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Irish Insurance Ltd is regulated by the Central Bank of Ireland.
