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
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