Make the most of tax free savings
You are entitled to claim generous tax relief on pension contributions. If you are a higher rate taxpayer, for every €1 you save, you can benefit from up to 40%* in tax relief. So if you make an overall monthly contribution of €100, this means it will actually only cost you €60 after tax relief.
* Assuming higher rate tax payer (40%). It is important to note that tax relief is not automatically granted. You must apply to and satisfy Revenue requirements.
A pension can give great opportunity for growth
Getting growth on your money is important as inflation can reduce the buying power of that money over the long term. Investing your money in a pension gives you access to a wide range of investment funds which can give your money the best potential for growth over the longer term.
Up to €200,000 as a tax free retirement lump sum
On reaching retirement, you may be able to take part of your retirement fund tax free, subject to a limit of €200,000. Even where the retirement lump sum is greater than €200,000, the next €300,000 is only taxed at the standard rate (currently 20%). This very attractive benefit is not available on any other savings plan!
Note: There is a limit on the maximum fund that can be built up on retirement. This is currently €2,000,000. This figure includes all of your pension funds, including the capital value of any retirement benefits drawn down since 7th December 2005. Where the relevant limit is exceeded, the excess in your pension funds at retirement will be liable to a once off Income Tax charge.
A wide range of Investment Funds
You have access to a wide range of investment funds from global and specialist investment managers to suit most risk appetites including funds which are aimed specifically at providing for your retirement.
It’s never too late to start your pension.
The percentage of income that you can contribute to your pension and obtain tax relief on increases as you get older. Depending on your age, you can potentially save up to 40% of your personal income into a pension and claim full tax relief so even if you are starting your pension late, there’s still time to catch-up! You also have the option of making top up contributions to your pension (subject to Revenue rules
Feel free to contact Michael on (086) 8440541 or email us at info@mkfinancial.ie
Michael Keville T/A MK Financial is regulated by the Central Bank of Ireland
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