Why take a pension?
Pension Schemes provide a tax-efficient saving system to provide you with an adequate retirement income. The State pension is equal to one third of the national average wage, and is designed to cover only your basic living requirements, not replace your income. With Ireland being a country with an ageing population, there is no guarantee that there will be adequate state funds available to pay out State Pensions in the future.
The great thing about saving for retirement is that the taxman gives you a really good deal.
- Your contributions into your retirement plan are not taxed. The table below sets out the limits.
- The investment growth that your fund achieves is also free of tax.
- Although you do pay tax on your retirement income, you will get a tax free lump sum that is 25% of your accumulated fund.