The importance of pension planning in Ireland

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The importance of pension planning in Ireland

The importance of pension planning in Ireland

Pension planning is a crucial part of your finances, but it’s not something that people tend to think about until they get older. However, the earlier you start planning for retirement, the better off you’ll be in the long run. The benefits of starting early include:

• Having more options available to you when it comes time to retire
• Being able to take advantage of investment opportunities while they’re still available (such as stocks or bonds)
• Having more time on your side if there are any unforeseen circumstances that affect how much money is saved up

Takeaway:

Automatic enrolment pension is a way to save for your retirement. It’s not just for people who are self-employed; any employee can be automatically enrolled in their employer’s pension scheme, regardless of whether they have other sources of income or not.

You can choose how much you pay into your pension scheme–the minimum contribution rate is 3% of earnings up to the higher rate tax band (currently €34,550). As an example: if you earn €40,000 per year and contribute 3%, this would equate to an annual contribution of €1,200 which will be deducted from each paycheck by your employer and paid into their chosen provider’s fund on behalf of both them and yourself (this amount will also get matched by some companies).

 

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