When we think about the purpose of Financial Planning, it is simply to help you to make the most of the finances available to you. It is to assist you in making the best possible decisions that will allow you to lead the lifestyle you want now and in the future. By saving today we have means to spend tomorrow.
Income in retirement can be generated in many ways, such as rental income, share dividends, state pensions etc but there is no more efficient way to save for retirement than a Revenue approved pension. The Irish Pension system may not be perfect but the tax reliefs available are extremely generous.
This makes a pension one of the best possible options for accumulating wealth throughout your lifetime.
What is a Pension Plan?
Pension Plans are long-term saving plans designed to provide you with an income in retirement. The regular contributions you make to your pension fund benefit from generous tax relief, greatly reducing the real cost to you, while at the same time enjoying tax-free investment growth. Pensions are different to other saving plans due to these tax incentives which make them an attractive method of saving for retirement.
As life expectancy increases it means that we can look forward to a longer retirement. A longer retirement naturally means we are going to need more money to enjoy it and therefore pensions are more important now than ever.
Starting a pension is one of the smartest financial decisions you can make.