When it comes to pensions it’s never too late to start planning for your retirement
Some of the things that individuals need to check regarding their existing pension arrangements includes that,
- they are invested in funds that still match their attitude to risk
- their existing arrangements are appropriate to the stage they are at in their pension investment cycle
- they have up to date valuations on their policies
- they know the direction on what exact retirement benefits they are trying to achieve
10 to 15 years from retirement is a sensible investment for those people who put the time aside with a qualified pension advisor to assess and employ an effective pension funding strategy.
If you already have a pension plan you probably know that it is an extremely tax efficient way of saving money for your retirement years. However, your pension plan needs to be reviewed regularly to make sure you are fully up to date and informed of changes and developments which may affect you. A review of your existing pension arrangements including most importantly your fund choices, will give you an indication of the type of portfolio which will best assist you in reaching your retirement targets.
What are Personal Pensions?
These are plans that are usually paid for by personal contributions, however there is often an option for employers to contribute should they wish. Like Company Pension Plans, tax relief can be sought on contributions made and a pension is provided for at retirement.
The two main types of Personal Pensions are:
- Retirement Annuity Contracts (RACs)
- Personal Retirement Savings Accounts (PRSAs)
According to figures released by the Central Bank of Ireland, the number of young people with pensions has reduced dramatically since the recession.
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Take a look at some future developments in the pension world – five key pension trends.
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