In order to secure a financial future, starting a pension is one of the smartest financial decisions you can make.
But what is best, to wait to be included in the upcoming Auto Enrolment or to set up an Occupational Pension? Auto-Enrolment is due to be rolled out during the second half of 2024 and is for employees aged between 23 & 60 who are earning a salary of €20,000 or more. If these employees have no other pension arrangement in place, they will automatically be enrolled to this scheme with employers required to facilitate auto enrolment through their payroll. The Auto-Enrolment is a Defined Contribution arrangement with contributions being paid by the employee, the employer, and the State. There are set contributions to be paid and there will be no flexibility with this. Contributions will increase every three years as follows. Year Employee Contribution Employer Contribution State Contribution 1-3 1.5% 1.5% 0.5% 4-6 3% 3% 1% 7-9 4.5% 4.5% 1.5% 10 + 6% 6% 2% *Employer and State Contributions are capped at €80,000 salary. The Auto-Enrolment scheme offers only four investment choices and will run up to State Pension age with no access to funds prior to this. Although it is of course welcome that more people in Ireland will now have a pension in retirement, it must be understood the employees included in the Auto-Enrolment will not avail of the same benefits available from an Occupational Pension. An Occupational Pension can be open to all employees with no strict criteria to be included. This gives you the opportunity to include employees in a pension now ensuring that they do not lose out on valuable time and savings ahead of their retirement. An individual occupational pension gives employees more flexibility in terms of how much they want to contribute, a wider range of investment choices become available to them with the added benefit of financial advice. Under an occupational pension members have the option of taking their benefits from age 50 and move their existing pensions to new employments if required. For contributions made by the employee, into an occupation pension, they can avail of tax relief at their marginal tax rate, and this is extremely beneficial for employees within the 40% tax bracket. It is important for employers to seek advice to satisfy future obligations in terms of pension provisions under the traditional route by setting up an occupational pension scheme or employer sponsored PRSA. Contact us to discuss the impact Auto-Enrolment can ahve on your company and your employees.
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In the hustle and bustle of our daily lives, we often prioritise immediate needs and desires over long term financial planning. It's all too easy to put off purchasing personal financial protection products like life assurance, specified illness cover, and income protection. However, this procrastination can have serious consequences for our financial security and peace of mind. We’re going to give you a few reasons why you should not delay in taking out these essential financial protection products.
The first and most important reason is that life is unpredictable, and unexpected events can happen to anyone at any time. The sudden loss of a loved one or a primary breadwinner can leave a family in financial turmoil. Life assurance provides a safety net for your loved ones, ensuring that they are financially supported in the event of your untimely demise. Delaying the purchase of life assurance can leave your family vulnerable, especially if you are the sole provider. If you have dependents who rely on your income, it is your responsibility to ensure their financial security in your absence. Life assurance is a way to fulfil that responsibility. The longer you delay, the longer your loved ones remain exposed to financial risks. By taking action now, you can ensure peace of mind for all of you. It’s also worth considering that a serious illnesses like cancer, heart disease, and stroke can strike without warning. These conditions can not only take a toll on your health but also your finances. Specified illness cover provides a lump sum payment if you are diagnosed with a covered illness, giving you the financial means to cover medical expenses, seek specialised treatment, or make necessary lifestyle adjustments. Delaying the purchase of serious illness cover could leave you financially unprepared to cope with the costs associated with a critical illness. Similarly it’s worth noting that your ability to earn an income is one of your most valuable assets. Income protection insurance ensures that you continue to receive a portion of your income if you are unable to work due to illness or injury. Without this protection, you may find yourself struggling to make ends meet during a period of reduced income. Delaying the purchase of income protection can leave you vulnerable to financial hardship in the event of unforeseen circumstances. The good news is that one of the benefits of purchasing personal financial protection products early is that you can often secure lower premiums and better cover. Insurance companies typically charge lower premiums to younger and healthier individuals. By taking action sooner rather than later, you can lock in more affordable rates and potentially access more comprehensive cover. Overall, it’s about peace of mind. Financial stress can take a toll on your mental and emotional well being. Knowing that you have adequate financial protection in place can provide you with peace of mind. It allows you to focus on your present and future without constantly worrying about the "what-ifs." Delaying the purchase of these protection products can result in unnecessary stress and anxiety. We’ll leave you with a suggestion. Don’t delay. By acting now, you not only protect your loved ones, but also secure your own peace of mind. Managing your financial life today can be a fairly complex affair, with lots of different challenges and aspects involved. Our role is to help you make wise decisions in relation to all areas of your financial life.
We play an important role in helping you to safeguard your future and that of your family, no matter what life throws at you. We help you protect your financial future against unexpected and premature events such as illness, accident and indeed death. Each of these events often have a devastating affect emotionally on families. It is our job to ensure that your financial situation is not an increased burden should one of these events occur. We will advise you and help you arrange the necessary and most appropriate financial products to protect you and your loved ones against these unforeseen events. Life Assurance Probably seen as the most basic financial protection product, life assurance pays out a lump sum upon the death of a life assured. It is very important that you have the right type of policy to meet your specific needs. However life assurance comes in many different forms, it may be simply to provide financial protection for a family in case of death, or it may be to repay a specific mortgage or loan repayment on the event of death. Life assurance also plays an important role in tax planning, particularly in the area of estate planning and inheritance tax planning. It is important to be aware of the range of different features and benefits. We will give you advise based specifically on your needs. Specified Illness Cover Suffering a significant illness is always a worry for families. And of course you worry about how much it will all cost and are there other costs emerging as a result of the illness. Specified Serious Illness cover pays out a lump sum benefit in the event of the life assured suffering from one of a list of illnesses as specified in the policy. This can literally be a life saver, sometimes enabling a policyholder to immediately access treatment that may otherwise be financially beyond them. With an awareness of all the policies available in the market, we can help you decide the required level of cover and will find the policy that best meets your needs. Income Protection Income Protection, sometimes referred to as Permanent Health Insurance (PHI) is the foundation of financial protection. It is a product that financially protects you from being unable to work due to illness or accident. After a waiting period the policy pays out a replacement income until a specific age. The policy pays out until you are able to go back to work or in some cases the benefit may continue to be paid right up until the end age of the policy, often at age 60 or 65. There are many different benefits available under these policies with different benefit levels, waiting periods and ceasing dates. WE will help you to sift through these options and find the right policy for you at the best price. Cummins Insurances Ltd will help you to protect your family financially against all these unforeseen events and allow you to take comfort in knowing that we have your back. |
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