Pension Planning

D Moloney Financial

Pre-Retirement Phase

The pre-retirement phase of Pension planning is all about building a savings pot for your retirement.

When you are no longer willing or able to continue working, you will need to have savings from income earned in your working years.

Yes, the State Pension is currently €248 per week or €12,900 p.a. and that’s a welcome payment. But you need to build your own savings pot to increase the household income after you retire.

The good news is that the State helps you to save for your pension. When you put €1,000 into your pension the state refunds you the income tax paid on this money, which can be 20% or 40%.

The relevant tax break can be described as the tax you would have paid had you not put the money into your pension.

D Moloney Financial

Pension Contributions

One of the most common questions people ask is, how much should I contribute?  While there’s no minimum amount as such, the maximum amount you can contribute depends on your age.

AGE

29 or younger

30 – 39 years

40 – 49 years

50 – 54 years

55 – 59 years

60+ years

MAX. CONTRIBUTION BY AGE

15% of net relevant earnings *

20%

25%

30%

35%

40%

* These are percentages of your earnings up to €115,000. If you’re a professional athlete, your limit will be 30% of earnings, regardless of your age. On retirement you can take a tax-free lump sum of 25% of your fund, up to a maximum of €200,000. The remainder of your fund can then be invested in an Annuity or Retirement Fund, which will be used to pay you an income in retirement.

The information contained herein is based on our understanding of current Revenue practice as at July 2020 and may change in the future.

D Moloney Financial

We Only Work With Trusted Financial Service Providers

Here at D Moloney Financial Services we work with a wide variety of financial providers. This allows us find the best products and offerings for our clients at the best available prices on the market.

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In accordance with the Sustainable Finance Disclosure Regulation (‘SFDR’), we inform you that in our advice with regard to Insurance-Based Investment Products (‘IBIPs’) we assess, in addition to relevant financial risks, relevant sustainability risks as far as this information is available in relation to the products proposed / advised on. More specifically, this means that we assess environmental, social or governance events / conditions that, if they occur, could have a material negative impact on the value of the investment. We integrate these risks in our advice depending on client preferences on a case by case basis.