REasons to start a pension

​1. Save Tax on pension contributions, investment growth and on income in retirement (within limits)

2. Your income could drop by almost 70% in retirement as the maximum state pension is €12,912 a year (€248.30 per week) but the average wage is €40,039. 

3. You may need an income for up to 30 years or more when you retire. This could amount to as much as a third of your life, so it makes sense to save now. 

4. If you do qualify for the state pension of €12,912 a year, you could be 68 before you receive it as the qualifying age is changing from 65 to 68. The average wage is €40,039 so that's a potential shortfall of €27,127 per year for 3 years. 

5. Starting pension contributions early can have a significant impact on your retirement fund. 

6. Higher rate tax payers can potentially benefit from up to 40% in tax relief on every €1 saved. A €100 contribution only costs you €60! If you pay tax at the standard rate you can benefit from 20% tax relief. 

7. A pension can give you access to a wide range of investment funds which can give your money potential for growthy over the longer term. 

8. At retirement you may be able to take a retirement lump sun tax free, subject to a limit of €200,000.

9. The sooner you start the better. Even if you are older it is not too late. You can claim tax relief on a higher percentage of your earnings, so there may still be time to catch up. 

​See the below Pension Calculator to see how much you should consider saving to reach your goals at Retirement. 

Protect your financial future with this Pension & Retirement Calculator from Zurich Life