A pension plan is easiest money that you’ll ever make - FDC Group
Close close

A pension plan is easiest money that you’ll ever make

Article by Tom Barry.

  • According 2020 CSO figures 64.7% of the population have pension coverage of some form.
  • Pension coverage is lowest among younger age groups with as few as one in four 20-25 year-olds contributing to a pension scheme.
  • All gains and income from pension investments are tax-free while in the pension.
  • In contrast, investment gains are taxed highly in Ireland. Income from stocks and property is also taxed at income tax rates.
  • Investors have flexibility in how they invest their pensions and are not restricted to standard ‘off the shelf’ pension company funds.
  • The decision has finally been made that the State pension age is to stay at 66 and will not increase.
  • The Pensions Commission also recommended that a way be allowed for people to retire at the original retirement age of 65, but with a slightly reduced State pension.
  • Under a plan put forward by Social Protection Minister Heather Humphreys, these people would be able to choose to defer drawing down their pension at age 66, continue to work and pay PRSI and qualify for a slightly higher pension when they do retire.
  • Do your future self a big favour and start a pension today.

Read the full article here.

Tom Barry is a financial consultant with FDC Castletownbere and Skibbereen.