It’s never too early to start saving for your retirement.
Pensions are an extremely tax efficient way of saving. You get tax relief on your saving at the marginal rate; funds accumulate tax free until retirement and you get a percentage of your fund tax-free at retirement.
Savings for retirement
You can do your saving personally, either through a personal pension, PRSA or AVC (free standing). Or you can save through a company, with an executive pension, company scheme or AVC (via scheme). Your Financial Broker can advise on the best options for your particular circumstances.
Changing careers, redundancies and pension scheme windups can imply your benefit in a pension scheme is restructured and possible a fund is transferred out of the scheme and set up independently on your behalf. This complex area has potential for considerable loss to you as you are swapping one benefit for another. Your Financial Broker will be able to talk you through the issues involved and you can appoint him to deal with the scheme trustees on your behalf.
Post retirement options
Having spent years saving your retirement fund, it’s worth spending a few hours with a Financial Broker discussing the best way of funding your retirement. For many, that will be the traditional annuity route i.e. income for life. Others may wish to explore post retirement investment through Approved Retirement Funds (ARFs). Either way your Financial Broker is expertly qualified to talk you through this choice and he can recommend the most appropriate course of action for you.
Things to watch out for:
- A company option for pension saving is usually more beneficial especially if it’s your company.
- Be extra careful with defined benefit options under pension scheme transfers.
- ARFs have longevity and investment risk, which your Financial Broker will explain.