Retirement advice is invaluable, so before you reach retirement contact me to determine your options and be Retirement Ready.
If you started out on the right path with retirement planning, then your fund may be sufficient for retirement. However, many people approaching retirement realise that there is an opportunity to increase their fund and often find that financially they can afford further funding and receive further tax relief.
It is best to review your retirement funding each year but certainly before retirement.
When can I retire?
Accessing pension benefits depends on the type of retirement plan you have and the applicable rules.
Personal Pensions & PRSAs allow retirement between age 60 and 75. There are circumstances where benefits can be accessed earlier.
Executive Pensions and Employee Pensions traditionally had a retirement age of 65 which tied in with the state pension in the past. Scheme rules determine the retirement age, known as, the normal retirement age (NRA). Under revenue rules benefits in these schemes can be accessed between ages 60 and 70. However, there are circumstances where benefits can be accessed sooner.
You should bear in mind that the State retirement age in Ireland currently starts at age 66. Benefits may vary depending on qualifying PRSI payments.
see Citizens Information Website (external site)
Whether you're starting to save for your pension, planning your retirement or have just recently retired, the best way to ensure you take the right options is to take ownership and seek professional advice.
Planning your retirement
There are choices to consider before you start planning your retirement. It is a very special time and the decisions you make now can make all the difference to your lifestyle in retirement. With the right information, you should be in full control of when and how you take your money. I am here to help you understand your options and will guide you as you take the next steps in planning your financial future.... Contact
An income in retirement
On retirement you can take a cash lump sum that is tax free, subject to Revenue limits. You'll want the remainder of your retirement fund to see you through the rest of your life, so it's important to consider options that will suit your personal circumstances.
You could decide to receive your pension income from an Approved Retirement Fund (ARF), which allows you to withdraw from your fund on a regular or ad hoc basis, or an Annuity, which pays you a set regular income.
With an Annuity you will receive a regular income for the rest of your life. Annuities may be more suited for people who wish to avoid investment decisions in later life and would prefer a guaranteed income for their retirement. Pension Annuities provide three options at retirement:
Single or Joint Life
A Single Life Annuity is payable for the rest of your life and ceases on your death. A Joint Life Annuity pays a percentage of your pension annuity to your spouse /civil partner after you die.
If you choose to include a guaranteed period, your pension will be payable for a minimum of the guaranteed period, even if you die during that time.
Escalating or Level
A Level Annuity means your payments remain the same throughout your life. An Escalating Annuity means your payments increase at a fixed rate each year but start at a lower rate than a level annuity.
Given the increase in life expectancy, most of us can look forward to a longer and more active life in retirement. If you are nearing retirement age, there are a few things you may want to think about. The first thing you should consider is the lifestyle you would like to have in retirement. If you have a pension, you may want to consider making additional contributions. Talk to me today about retirement planning.
With most financial matters, a good plan is invaluable, and that's certainly true if you plan on retiring early. It is also worth considering that due to better health, life expectancy is increasing and we can expect to live longer in retirement.
The age at which you can access to your retirement fund depends on the contract, scheme rules and revenue rules. If you plan on retiring early you may need to build up a larger fund so that you will have sufficient income for the additional years of retirement. Subject to pension rules, early retirement can be from age 50.
Approved Retirement Fund (ARF)
An ARF gives you more control over how your retirement fund is managed. An ARF is an investment plan with the intention of growing your fund/maintaining your income during your retirement years, based on your own investment strategy.
With an ARF you can still withdraw from your fund on a regular or ad hoc basis (subject to income tax and USC. PRSI may also apply). Please note that since your pension fund is still invested, its value may go down as well as up.
Any remaining ARF fund on death can be passed to your estate.
Contact me to discuss retirement options.........
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