A Pension is a savings policy with tax relief.
In our 20s, 30s, 40s and even 50s we accept that each month we pay for our mobile phone, Netflix, Spotify, internet provider but most of us don’t think about putting money into a Pension. Why not? What is it about the word Pension that seems to scare us? Is it thought of getting older? Does it seem a bit daunting? So let’s break it down.
What is a pension?
It is the money that you’ll live on once you’ve stop working.
Why should I have a pension?
A Pension gives you the income to enjoy living the next stage of your life. Thankfully the age expectancy has gone up into our 90s. So a Pension gives you the means to support yourself doing the things you love or simply to have the security to have a living income. You can use it to build up money and give yourself an income after you retire.
Taking advantage of Tax Relief
A pension is a way of saving that gives you important tax breaks on your contributions. For example, if you invest €100 in your pension plan, depending on your tax bracket, you can receive the following tax relief as outlined below:
Income Tax Relief €20
You pay €80
Income Tax Relief €40
You pay €60
So don’t delay, start saving today for your pension and the next chapter of your life. The HFM team are here and can talk you through the right plan for you. Don’t simply retire from something, have something to retire to!
Hegarty Financial Management 40 years caring for our clients financial wellbeing.