A personal pension plan is a personally owned pension, held in your name and is suitable for anyone saving for their retirement. It is mainly suited to those who are self-employed, or whose employer does not offer a pension scheme.
One of the most common questions people ask is, how much should I contribute? While there’s no minimum amount as such, the maximum amount you can contribute depends on your age.
| AGE | MAXIMUM CONTRIBUTION BY AGE |
| 29 or younger | 15% of net relevant earnings * |
| 30 – 39 years | 20% |
| 40 – 49 years | 25% |
| 50 – 54 years | 30% |
| 55 – 59 years | 35% |
| 60 + | 40% |
* These are percentages of your earnings up to €115,000. If you’re a professional athlete, your limit will be 30% of your earnings, regardless of your age.
On retirement, you can take a tax-free lump sum of 25% of your fund, up to a maximum of €200,000. The remainder of your fund can then be invested in an Annuity or Retirement Fund, which will be used to pay you an income in retirement.
The information contained herein is based on our understanding of current Revenue practice as of July 2020 and may change in the future.
Starting a pension will give you more ownership of your future. Your pension fund will grow over time, which is why the earlier you start a pension plan, the more time you will have to grow your retirement fund.
At Murray & Spelman Financial Services, we know how daunting the process of starting a pension can seem at first. Our job is to make seemingly complex financial matters become easily comprehendable for clients and to help them achieve their goals.
Murray & Spelman have all the experience and skills to ensure that your pension process will be comfortable and secure. Our wealth of experience and expertise has helped clients across various professions to achieve their financial goals.
Murray & Spelman (Financial Services) Ltd help you plan for your future, while you live for today!
Contact Murray & Spelman
If you would like to learn more or ask specific questions, please contact us below. Contact Murray & Spelman Financial Services Ltd over the phone or by email, to find out more and receive a complimentary consultation.
Phone: Kildare 045 888 007 Galway 091 759 555
Email: info@murrayspelmanfs.ie