26 Oct 10 reasons to invest in a pension

This time of year self-assessed individuals are reminded of the fast approaching deadline for filing their end of year tax returns. This also presents an opportunity for pension planning and tax avoidance which can go hand in hand. There are the obvious three tax reasons for pension planning when it comes to the tax effect. The Pensions Taxation System is often expressed as Exempt, Exempt, Taxed (or EET) referring to the fact that:-

• Contributions are exempt from tax i.e. tax deductible
• Investment Returns are exempt from tax, and
• Benefits are taxable as any other would be, apart from the Tax Free Lump Sum

You may not be one of the self-assessed population and therefore as a useful reminder to you too, here is a more complete list of good reasons to fund for your retirement through a pension.

1. A Pension is a smarter way to save
2. Your income could drop by up to 66% in retirement
3. You may need an income for up to 30 years or more when you retire
4. If you do qualify for a state pension, you could be 68 before you receive it
5. The earlier you start contributing to your pension the better
6. Make the most of tax free savings
7. A pension can give great opportunity for growth
8. Up to €200,000 as a tax free retirement lump sum
9. A wide range of investment assets, direct equities, investment funds, property
10. It’s never too late to start your pension

More details on above is provided here in this flyer.

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