Tag Archives: Pensions

Pensions ? as you are relocating -Why Bother ?

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When you are planning your return home to Ireland the mere mention of ” Retirement Planning ”  is the last thing on your mind .

The idea of considering Pension options is way down the  relocation list after career,property ,education, healthcare etc .

However the harsh reality  for some is that they  can become completely reliant on the State Pension system to fund their retirement .

The fact that we are living longer and enjoying far better lifestyles than previous generations only exacerbates the issue .So why are more people not taking out their own pensions to top up the State Benefits available ?

Probably because they do not know how attractive they are from a tax perspective.

There’s no better method of reducing your tax liability in Ireland than a Pension Plan .That applies to whether you are an Employee ,Contractor or own your own business .The Tax rates in Ireland are quite high vs other western economies with the highest rate of tax being 55% .

You have no option but to simply pay them .However ,what most people don’t know is if they saved ,for example 1000 euros into their pension they would be able to claim 55% ( 550) back in tax relief which means they get 1000 euros in their pension and they only paid 450 euro out of their own pocket.

But Pensions are bad because people lost all their money when the stock market crashed in 2008, I hear you say ,Wrong, saying this is like saying cars are bad because they crash .This is another reason why people don’t bother with pensions but the truth is that you can choose how your pension  funds are invested ,so if you want low risk ,then you can get low risk .You don’t have to assume any more risk than you are comfortable with .

So if like some people ,the mere mention of retirement planning can put you off doing anything about it I do hope you’ll now reconsider if only for the chance to take a little back from the taxman every year .

Robert Whelan is Managing Director of Rockwell Financial Management to contact Robert for expert Pension advice email robert@rockwellfinancial.ie 

Construction Pensions important when considering returning home .

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Back 4 Good has received many enquires from people in the construction sector who are considering returning home for good and want  to know if they can set up a new pension and add this pension to an existing pension that they may have taken out before  the downturn .

indeed some  Back 4 Good registrants held the view that once the departed Ireland for work that the lost their pension rights completely, this of course is not correct and your contributions are safe and there for you to draw down at retirement age

In the construction sector in particular many who left have moved jobs on a number of occasions and moved locations, the Construction Workers Pension Scheme is actively contacting members of the construction scheme with excellent online services including a ” calculate your pension ”  tool on their site www.cwps.ie .

If you are considering returning home for good during the upcoming Christmas break this site is your first port of call .

You will be able to trace what benefits you have in the scheme and examine how to combine your old pension with a new pension with your new employer .

If you have moved  through many jobs overseas you should register your latest address with www.cwps.ie so that they can send you relevant and important pension documents

Your contribution to your pension is held in trust ,it is your money and and trustees manage the fund for you so do not hesitate to find out your up to date information  either online at www.cwps.ie we will post regular information on pensions and developments in the pension area to assist .

When  you are considering your  options on returning home your pension should be factored in as you may have a better lump sum and pension than you anticipated and this combined with a number of years of new contributions could make your retirement comfortable for you and your family .