For many of us, getting our finances in order can seem like an extremely daunting task. To make things a little easier, we’ve enlisted financial expertto break things up into bite size chunks, and demystify the process for those just starting out on their pension planning journey.
Pensions are a subject that many of us tend to put on the back burner due to the confusing jargon and numerous options, or simply because we feel that retirement is too far away to worry about. However, when it comes to securing a stable financial future, pension planning plays a crucial role. With a little guidance, you can set yourself up for a comfortable retirement.
If your employer offers a matching pension scheme, this is essentially free money added to your pension fund. I can’t underestimate how crucial it is to take full advantage of such schemes to maximise your retirement savings.Starting from January 1, 2025, Ireland will implement an auto-enrolment pension scheme for all workers earning €20,000 per year or more aged between 23 to 60 years of age. This will affect 700,000 workers in Ireland, 200,000 of which are higher-rate taxpayers.
This means that all employers not already contributing to a pension scheme, under the above criteria, will be required to automatically enrol in a pension. However, there are limitations on the government’s auto-enrolment pension in relation to flexibility and for higher rate taxpayers losing 15% tax relief on their payments. This change underscores the urgency for individual pension planning and highlights the increasing importance of securing your financial future.
At Alpha Wealth, we offer a variety of tools and resources to demystify the pension planning process and make it as straightforward as possible. Our team of financial planners is always on hand to provide expert advice tailored to your unique circumstances. Taking a small action today could have a great impact on your future.With a Cypriot background and having been raised and educated in London, Nick has worked in investment and private banking for some of the biggest banks in the world.