Plan for your Retirement – Your future starts now

A famous person once said: “People don’t plan to fail, they fail to plan.”

To that point, financial advisors stress that planning for retirement should start early to build up a solid pension fund to enable you to enjoy your retirement. It will get you into the habit of saving, and the earlier you start the more comfortable your retirement is likely to be.

The amount of money that a person needs to save for retirement depends on a variety of factors: income level, rate of returns on investments, the age they start saving and their desired retirement age.

 5 steps to a better retirement:

1. If you have yet to start your pension, there one piece of advice that your will be certain to get, STOP putting it off and START planning your retirement today.

2. Work out how much you should be saving
Generally, you should be saving about half your current age as a % of your income.  For example if you are 30years, you should be saving 15% of your income

3. Earn tax breaks as you save.  Saving for your retirement is down to you, but to encourage us to save for our future, the government will give us valuable support in the form of tax relief.  This is the most compelling reason to save through a pension. Every contribution you make to a pension, you will receive tax relief based on the rate of income tax your pay.

The table below illustrates the sort of savings you could be making:

Pension Contribution €200 Net Contribution: €118
Tax relief: €82 (based on tax rate of 41%) Frequency of payment: monthly

 

4. Investing in your pension.  A key factor in helping you grow your retirement pot is the investment return you could earn on your pension contributions. Where your money is invested and how much risk you are willing.  Generally the further you are away from retirement, the more adventurous you can be with your investment choice.  At Future we will help you work out the best investment strategy for you.

5. Make sure your pension can change with you.
Setting up a pension is the first step on a journey which will take approximately 40 years to plan. As your circumstances and career changes so can your pension, you can take a break from payments, increase or decrease your contributions, switch funds as your attitude to risk may change.

At Future we will guide you through the process of planning your retirement.