Pensions

We should all look forward to our retirement but many of us spend our time worrying about how we can meet ongoing day to day bills.  It is very likely that when we retire from active employment we will all face a significant drop in our income. It should be noted that the State Contributory Pension for a single individual is currently equivalent to approximately 30% of the average Industrial Wage and if you as an individual, earn more then the average Industrial Wage then the reduction in your income at retirement could be even more then dramatic.

It has become obvious that the Contributory Old Age Pension does not provide sufficient income for an individual to live on in retirement.  Therefore it is critical that all of us would plan to save for our retirement.  Pensions provide a tax efficient structure in which you can do this.  A pension is effectively a savings plan in which an individual can obtain tax relief on the contributions that they make to the plan.  At retirement you are entitled to take a tax free lump sum with the balance of funds being used to either buy a pension for the remainder of your life or alternatively invest it in a structure that protects the balance of the fund.

In the current environment it is very difficult for individuals to consider their long term retirement requirements however, if you as an individual have surplus cash flow and can afford to save this then a pension makes sense from a tax efficiency perspective and also from a long term savings perspective.

In DHKN Life and Wealth we conduct individual comprehensive reviews of your personal circumstances and make our recommendations which are most appropriate to those particular circumstances.  In making our recommendations DHKN Life and Wealth will always take into consideration the following:-

  1. Type of Employment
  2.  Individual’s Annual Earnings
  3. Rate of Tax that an Individual pays
  4. Personal Circumstances (Including Age, Marital Status and Financial Dependents.