John Ellis

Never too late to start a pension

BY JOHN ELLIS

FINANCIAL ADVISOR

MORE than 40% of Irish workers have made no pension provision and will be entirely reliant on state supports when they retire.

Statistics issued by the Central Statistics O ce (CSO) show that people tend to leave it late to start contributing to their pension. e survey shows just six out of 10 workers aged 20-69 have private pensions.

Pension coverage remains lowest among younger workers. More than eight out of 10 workers aged 20-24 do not have a pension. Just under half of 25-34-year-olds have a pension, while pension coverage is greatest among workers aged 45-54, where it is nearly three quarters and a little over half of self-employed people have pension coverage. ere are a range of retirement structures available for everyone, even those in unpaid occupations e.g. homemakers and are exible enough that there is really no excuse not to make some provision for old age.

e monies invested into a pension attract tax relief at your marginal rate, if you pay tax at 20% then for every €100 you invest you receive tax relief of €20, net cost to you €80. And at the top rate – 40% for every €100 the nett cost is €60. e money invested attracts growth and this growth is not subject to tax in Ireland.Everywhere you invest money the interest accrued is taxed, but not so with a pension. At retirement you can take 25% of the total fund tax free, (up to €200,000 after which there is a sliding scale) then depending on your income in retirement tax payable could be quite low.

So why such a low uptake. ere are many excuses but the validity of these is at best questionable.

“I want to live for the moment and enjoy each day as it comes... I could be dead to-

morrow.” Even though life expectancy is rising there is a chance you may die before retirement but then again why be disappointed in your old age when you suddenly have to live of the Old Age Pension.

“I’m too late... there’s no

point me starting now,” e assumption being there is an age limit when it is too late. Even managing to put away a small amount for your remaining working life can give some lift to your income in retirement.

“I’m too young... I don’t need

to worry yet!” e earlier you start saving for retirement, the more time your pension has to grow. In some periods and certain funds, values can double in growth over a tenyear period. Also, the longer you leave starting the greater the amount you must invest to get the same outcome.

“I don’t have enough left over after the bills to put into a

pension.” De ne enough! Any amount will be of bene t when you come to retire. Take stock of your spending with a budget plan. You will be surprised where you can make savings. Do you have a Revolute account – the spending breakdown app will open your eyes! “I don’t pay tax.” is no longer holds water since the advent of the Personal Retirement Savings Account. (PRSA) rough the PRSA you can save for retirement and even though you don’t get tax relief on contributions for whatever reason you still can invest into an account that grows tax free and at retirement take 25% tax free.

Setting up or reviewing your pension is not all that di cult and with the help of a Financial Advisor you can be on the road to a comfortable retirement.

John @ellis nancial.ie. 086 8362633.

Luxury Accommodation | Spa & Leisure | Boyne Valley | Fine Dining | Heritage Sites & Monuments

The 4 Star Pillo Hotel & Spa, Ashbourne

Contemporary Luxury in the Heart of the Boyne Valley & the Gateway to Ireland’s Ancient East

THE Pillo Hotel & Spa combines 4 Star Luxury with a contemporary and modern style. Conveniently located at just 20 kilometres from Dublin City and 25 kilometres from Dublin Airport, the Pillo Hotel is just minutes from the Boyne Valley Drive and the heart of Ireland’s Ancient East. Our location is perfect for visiting one of Irelands most beautifully scenic areas. Take a journey through 9,000 years of Irish history as you discover the rich heritage of the Boyne Valley and the lush countryside of County Meath known as the Royal County as it was of ancient home of Kings and Queens.

Having recently undergone a major refurbishment in 2020, the Pillo Hotel now boasts a brand-new Reception area to welcome our guests arriving for Staycations and Business Travel alike. We have also refurbished our Rath Ballroom to a contemporary yet warm setting, that can cater for large conferences, private parties, gala dinners and our particular speciality, those special wedding days.

Awarded the Overall Hotel Leisure Facility of the year for 2020, Clannlife Fitness consists of a full newly refurbished gym with brand new state of the art equipment, free weights area, a spin room and also an aerobics studio. Additionally, the leisure centre has a 16-meter swimming pool with a kid’s pool area, as well as a sauna, steam room, Jacuzzi and hydrotherapy area.

Jule Beauty and erapy is our top of the range Spa and one of 5 Spas within the Jule Beauty brand. e Spa o ers a range of treatments from waxing to gel nails and everything in between. e team in Jule beauty are trained to the highest standard and o er an unrivalled experience from the moment you arrive.

Hotel Highlights include:

• Accommodation | 148 bright and spacious contemporary bedrooms • Food | Time Bar & Restaurant serves delicious

Mediterranean cuisine daily • Clann Fitness and

Leisure Centre | 16 metre swimming pool | sauna | jacuzzi • Spa | Jule Beauty and erapy Spa | a wide range of treatments • History | just minutes from the Boyne Valley, the Heritage Capital of

Ireland