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Reach out today Approved Retirement Funds (ARFs) and annuities are two common options for using your pension savings once you retire. Each has its pros and cons depending on your financial goals, risk tolerance, and life expectancy. Contact us today alternatively book your consultation and see how Quigley Financial Brokers can help you choose the best options available or contact richard@quigley.ie for further information. Here is a clear comparison: What is an Approved Retirement Fund (ARF)? An ARF is a post-retirement investment fund where you can keep your pension savings invested and withdraw money as needed. Ownership - you retain ownership of the funds. Flexibility - you decide how much and when to withdraw. Investment - funds remain invested, so value can go up or down. Tax - withdrawals are taxed as income. A deemed (notional) distribution is taxed annually (currently 4%-6% depending on age and fund size). Inheritance - any balance can be passed to your estate. What is an Annuity? An annuity is a contract with a life assurance company that pays you a guaranteed income for life in exchange for a lump sum from your pension fund. Security - provides predictable, guaranteed income for life. No Investment Risk - you don’t have to manage investments. No Flexibility - once purchased, it’s fixed - no changes or access to capital. Tax - income is taxed like regular income. Inheritance - usually, no value passes to your estate unless you choose options like a guaranteed period or spouse’s pension. Contact us today alternatively book your consultation and see how Quigley Financial Brokers can help you choose the best options available.

There is a common misconception that if you have health insurance you don't need serious illness cover, when in fact this couldn't be further from the truth. No one wants to think about what would happen if they became seriously ill or how they would support themselves and their family through an illness. That's why it's important to have a plan in place now so you can be reassured that should the worst happen, you and your family will be fully protected. While private health insurance covers your medical expenses should you get ill, the reality is that while you're recovering, you're not working. But that doesn't stop the bills coming in, mortgage, rent, utility bills, car payments and even your health insurance premiums still need to be paid. It is uncomfortable to think about, but if you suffered a serious illness such as cancer, and did not have the right protection plans in place, how would you support yourself and your family financially? Many people believe it'll never happen to them, but sadly this is not always the case. Incidences of cancer are growing and according to the National Cancer Registry of Ireland (NCRI) 1 in 2 of us will get a cancer diagnosis in our lifetime*. In addition to the distress and turmoil of being ill, patients and their families can be confronted with financial challenges too. According to a report published by the Irish Cancer Society entitled The Real Cost of Cancer, many patients and families face significant financial strains when really they should be concentrating on getting well**. The research report finds that patients often experience a severe drop in income while at the same time incurring extra costs for items such as home heating, childcare, travel, hospital stays, consultant visits and prescription charges, to mention a few. The Irish Cancer Society's report also calculates the average extra spend per month for a cancer patient and finds that it is approximately €756, even for patients with a medical card or private health insurance. In addition, the report finds that: "those who cannot work, work less or lose income as a result of having cancer, face an income drop averaging €1,527 a month, or €18,323 per year. Given these startling figures, it makes sense to have a protection plan in place now so you can be reassured that should the worst happen, you and your family will be fully protected. The right protection plans can help alleviate financial worries at a time when you need to focus on your health, safe in the knowledge that your family are financially secure too. Choosing the right protection cover for you is important. When choosing a protection plan there are a few options available. Whether its cancer cover, serious illness protection or life insurance, we have the right plan for you. Why not talk to a Qualified Financial Advisor who can advise you on the best plan for you and your family. *Source: The National Cancer Registry of Ireland (NCRI) **Source: The Irish Cancer Society Real Cost of Cancer report. Reach out today Contact us today alternatively book your consultation https://www.quigley.ie/book-consultation and see how Quigley Financial Brokers can help you choose the best options available or contact richard@quigley.ie for further information.

Many employers offer death in service to their staff, and it’s important to understand the simple differences between this benefit and life insurance. Life insurance is important for many people. It pays out a lump sum if you die or suffer a critical illness, helping your dependents cope financially. Death in service is similar. Yet some people may be unsure if they have death in service, while others may not know if it would be enough for their family to live on. Meanwhile, those who have death in service may not realise they could benefit from taking out life insurance too. What does death in service mean? Death in service may be offered by companies as part of an employee’s benefits package. It’s paid out as a tax free lump sum if you’re employed by the company (i.e. on the payroll) at the time of your death. While death in service may sound similar to life insurance, there are in fact a number of differences. This means that even if you have death in service, you might want to boost your cover with life insurance. Here’s why… Death in service payouts: How do they differ from Life Insurance? Death in service benefit is not taxable, but it can vary (though it is typically two to four times your annual salary*). Sometimes, death in service benefit is linked to a company’s pension scheme, and you’ll need to be signed up to it to qualify for the benefit. Finding out what you’re entitled to receive is simple – just ask your employer. You might think the benefit is a substantial sum of money, but you want to be sure the financial safety net for your family is as wide as it can be. Plus, if you were to die, the costs involved soon add up – especially considering the average cost of a funeral is just below €4,062**. Though a death in service payout is free of tax, bear in mind that tax is based on your personal circumstances and may change in the future. The payout of a life insurance policy depends on the cover you’ve chosen to take out – meaning you have the freedom to decide how much your beneficiaries get, not your employer. While a life insurance payout is also free of income tax or capital gains tax, bear in mind it could form part of what it called your ‘estate’ – your overall net worth – so may incur inheritance tax. Depending on how much your beneficiaries may need if you were no longer around, you may wish to supplement your death in service benefit with a life insurance policy. How does death in service work when it comes to policy payments? One of the main draws of death in service is that there’s no annual or monthly premium to pay – you just need to be employed to benefit from it. You’re required to make regular payments for life insurance, but, of course, your family or named beneficiaries could receive a higher payout in the event of your death. You can take your death in service benefit into account when you apply for life insurance, which can bring down the cost of cover because you will need less of it. It’s also worth remembering that if you leave the company where death in service is offered, you’ll no longer be covered. Who receives the death in service or life insurance payout? Death in service Usually, death in service schemes are set up under a discretionary trust, meaning trustees – i.e. your company – will have the final say as to who receives the money, though you can nominate a beneficiary. This shouldn’t be a problem, but it’s important to check with your employer if this is the case, and make your requirements clear. Your employer will also be able to explain how death in service is calculated. It’s worth bearing in mind that you’re unable to assign your death in service benefit to cover your mortgage, but your beneficiaries can decide to use the money towards repaying a mortgage. Life insurance With life insurance you have more options on who receives the payout. For example, you could place it in trust and choose your own beneficiaries, you could assign it to your mortgage, or you could simply leave it to form part of your estate. Underwriting Another key difference between life insurance and death in service is that you usually will not be underwritten for death in service. Underwriting is the process by which an insurance company will decide whether or not to offer you a policy, usually by asking you questions about your health and activity. You will go through underwriting when taking out a life insurance policy. What now? Choosing the right life insurance cover for you and those closest to you is important and will provide many great benefits. Speak to us today to find out more or discover the level of protection you need. Sources: * www.moneysupermarket.com/life-insurance/death-in-service/ ** https://www.funeralzone.ie/help-resources/arranging-a-funeral/the-cost-of-a-funeral Reach out today Contact us today alternatively book your consultation https://www.quigley.ie/book-consultation and see how Quigley Financial Brokers can help you choose the best options available or contact richard@quigley.ie for further information.

Zurich’s annual research into pension coverage in Ireland reveals the benefits of paying into a retirement fund and provides insights on the attitude of adults towards financial advisors during COVID-19. The majority (64%) of working adults are not provided with a pension in their company according to Zurich’s latest pension research, which highlights the challenges people face when trying to save for their retirement*. Of those surveyed for Zurich’s pension research, 35% of workers said they had a company pension and a further 34% are working but don’t have a pension. More than half of those surveyed said they don’t have a pension because they don’t have any spare money, and nearly a third of respondents haven’t gotten around to it. When it comes to pension contributions, the findings of the research make for interesting reading. While lack of affordability was found to be a key issue, most adults (38%) save less than €100 a month and the average monthly savings is €188. The majority (73%) of all adults would like to be able to save more and 27% feel they should be saving €101-€200 a month on top of their regular savings. Life in retirement When it comes to living their lives in retirement, a third of adults are extremely concerned about having enough money for their retirement. Although 85% of those surveyed will have their mortgage paid off by the time they retire, those that will not be mortgage free expect to still be making mortgage repayments in retirement. When asked what they thought was enough money to live off, 26% said they think they need an income of €20K- €30K to lead a normal life after retirement. Starting a pension For those who don’t have a pension, the research reveals interesting findings when it comes to peoples’ motivations for starting a pension. Over 30% are never planning to start a pension, and of those who don’t plan to start a pension, 74% said they will live off the State pension when they retire. Nearly half of all adults think it’s too late to start saving for their retirement. For those with a pension, over a half are satisfied with how their pension has performed and 57% said they think it’s advisable to start saving into a pension fund when they are in their 20s. Financial wellbeing Over half of working adults feel they should be responsible for their retirement fund, with 26% thinking their employer is responsible. When asked about auto enrolment or a mandatory pension, 46% said it could be a good initiative if implemented well. Tax benefits Despite the tax advantages that pension savings allow, nearly half of all adults do not know of them. Similarly, more than half do not understand how pension savings are invested or how to access their pension fund. When it comes to understanding pensions, engaging with a financial advisor could help, however only 31% have a financial advisor that they can talk to about their financial planning. *Source: Zurich Pension Survey 2021. Reach out today Contact us today alternatively book your consultation https://www.quigley.ie/book-consultation and see how Quigley Financial Brokers can help you choose the best options available or contact richard@quigley.ie for further information.

Supporting you, so you can keep supporting your family... If you are too ill or injured to work, you will still need money to pay the bills, as well as for the things that are important to you and your family. Income Protection gives you money each month until you’re well enough to work again. It’ll give you the breathing space you need to focus on getting better. Choose the cover that’s right for you Monthly benefit - Choose a monthly income of up to 75% of your salary less any State benefits. Deferred period - Choose how long you will wait before your monthly income kicks in – you can choose from 1, 2, 3, 6 or 12 months. The longer the deferred period, the lower the premium. Choose how long your cover lasts - Anytime from age 55, right up to age 70. Level or increasing cover - You can choose whether your income stays level or keeps up with the rising cost of living. Tax efficient plans to suit you 1. Personal Income Protection - with Tax Relief This is suitable for self-employed clients or if in a job that doesn’t provide an income protection plan. You will pay the premiums and can get tax relief at your marginal rate on the premiums you pay. Claiming tax relief is really important as it reduces the cost by the rate you pay tax at - so either 20% or 40%. If you need to claim, your income protection benefit will be paid directly to you, after tax and USC. 2. Executive Income Protection This is designed for employers who want to provide an income protection plan for employees. The premiums are paid for by the employer and qualify as business expenses that can be offset against corporation tax. The employer can also elect to have pension contributions covered under this plan. If the employee needs to claim, the income benefit will be paid to the employer, who passes it onto the employee through salary, making any relevant deductions such as tax and USC. You can also cover employer pension contributions with Executive Income Protection. To ensure that employer pension contributions are maintained while an employee is off sick, you can cover up to 100% of the employer pension contribution with Executive Income Protection. You can cover up to 35% of the employee’s salary to a maximum of €50,000. Income Protection at a glance Waiver of premium: If you are in receipt of a claim, the provider pays your premiums. Dedicated claims specialist: The provider helps you every step of the way. Relapse benefit: If you get the same illness again within 6 months, the provider will pay your monthly income straight away. Hospital Cash Benefit: Daily replacement income if you are in hospital for more than 7 days during the deferred period. But rather than just pay you from day eight onwards, the provider will backdate the payments so that you are also paid for the first seven days you’ve spent in hospital. Increasing cover: Boost your cover when something big happens like becoming a parent or getting a pay rise without giving the provider new evidence of your health. Reach out today Contact us today alternatively book your consultation https://www.quigley.ie/book-consultation and see how Quigley Financial Brokers can help you choose the best options available or contact richard@quigley.ie for further information.

Zurich’s annual pension survey reveals mixed feelings among Irish adults about saving for the future. More people in Ireland have a pension than in previous years, but concerns about providing for the future are still high, and nearly half of adults feel it’s too late to start saving for their retirement. Those are some of the key findings from Zurich’s 2021 pension survey, a nationally-representative survey of 1000 adults in Ireland, carried out by iReach. Right now, the State pension stands at €265.30 per week for those aged 66 and over. But with our old-age population growing at a fast rate, this payment is likely to become less affordable for the government in the decades to come, meaning a private or company pension could be vital to ensure a healthy standard of living after retirement. According to the year’s results, two thirds of workers (66%) have a pension of some kind, up a strong 18% on last year. Breaking down that figure, 35% of all adults have a company pension, 34% have a private pension, and 9% have both. But even with this positive upswing, other results provide for sobering reading. One third (33%) of adults surveyed say they never plan to start a pension. Worryingly, over half of those without a pension (51%) say they don’t have any spare money to pay into one, up 13% on last year. A further 32% say they haven’t gotten around to starting a pension yet. While the average amount saved by adults in Ireland is €188 per month, 38% save less than €100 a month, and almost three quarters of adults (73%) would like to be saving more. Providing for the future Future finances are a worry for many adults, with 33% saying they are “very or extremely concerned” about having enough money for their retirement. The average income adults feel they’ll need to lead a normal life in their older years is €23,717 annually. This is down from €27,111 in last year’s survey, but it’s more than €10,000 over the annual State pension of €12,912. Mortgage and rent repayments are set to be a reality for many retired adults in the future, which could make the amount required to live comfortably into old age even higher. Of the adults surveyed, 85% hoped to have their mortgage paid off into retirement. Of those who won’t be mortgage-free, 74% say they’re likely to be making repayments beyond retirement. As for renters, 37% of those in rented homes say they’re likely to be paying rent into their older years, down 6% on 2020. The average industrial wage is €40,000. If you’re someone who will still have big outgoings after retirement, it’s hard to see how you’d adapt to a State pension. The ideal is that the State pension would cover your basics, but that isn’t going to be realistic for everyone. Too late to start saving? The idea of running out of time is a common theme among respondents, with many feeling that the impact of saving diminishes as you get older. When asked what the ideal age to start a pension would be, over half (57%) say your twenties are the best time to begin one – and 46% feel it’s too late to start saving for retirement now. Figuring it all out Uncertainty about how pensions work are another obstacle for many of those surveyed, with 12% of people without a pension saying the process is “too complicated” for them to start one. That feeling is echoed in other findings too – almost six in ten (58%) of adults say they don’t understand how pension savings are invested, and around the same amount (60%) don’t understand when or how pension savings can be accessed. One of the key benefits of a pension is that part of it can be taken tax-free on retirement. Six in ten adults are aware of this, but tax still proves a tricky-to-understand issue, with 43% of adults saying they don’t know how tax relief on their pension works. Source: Zurich Pension Survey 2021. Reach out today Contact us today alternatively book your consultation https://www.quigley.ie/book-consultation and see how Quigley Financial Brokers can help you choose the best options available or contact richard@quigley.ie for further information.

The Finance Act was enacted on 15th December 2022, recent changes to pension legislation in Ireland offer a huge opportunity to business owners to fund their pensions and extract cash from their business in a tax efficient manner. This has come into effect on the 1st January 2023. Previously, companies were limited in how much they could contribute to an employee's pension by age related limits, service and salary. If a company made a contribution to an employee's PRSA which exceeded these age related limits, the employee would be liable for BIK. The new rules now allow companies to contribute as much as they want to an employee's PRSA without taking limits, service or salary into account. This offers a massive opportunity to business owners who wish to fund pensions for themselves, their spouse, or children. Tax relief on all employer PRSA contributions can be claimed in the accounting period in which it is paid. Under previous legislation, tax relief for 'special contributions' to pensions would have to be spread forward over five years. Employees will still need to consider the overall standard fund threshold of €2 million. PRSA’s were overlooked in recent years in favour of executive pension plans or occupational pension schemes. This was because the PRSA offering was not as attractive. However, with the recent change, many business owners will utilise the PRSA to extract cash from their business in a tax efficient manner. Further good news is that the company can contribute to both an occupation pension and a PRSA for an employee. Self-Employed, Sole Traders or Partnerships can pay a BIK free employer PRSA contribution for an employee and this can include adult children (over 18) who can be put onto the payroll. The contribution to a Revenue approved pension, such as a PRSA, is not subject to CAT even where there is family relationship between the parties. Therefore, contributions can be made to a child's pension, if they are in employment and over 18, without impacting the CAT exempt amount. Reach out today Contact us today alternatively book your consultation https://www.quigley.ie/book-consultation and see how Quigley Financial Brokers can help you choose the best options available or contact richard@quigley.ie for further information.

Research by Zurich reveals that there are many great benefits to be gained from engaging with a financial broker – especially when it comes to life insurance. New research carried out by Zurich highlights the benefits of financial broker's and the advantages of seeking expert advice. The research found that 78% of people who have a financial broker believe the advice they have received has had a positive impact*. The same number of people said that due to their positive experience having sought advice from a financial broker, they would recommend one to their family and friends. Over half of respondents to the research survey have life protection. A third of respondents have serious illness cover. 31% have mortgage protection and 24% have income protection. You can’t predict what life has in store, and when it comes to things like premature death or serious illness, you usually think ‘it will never happen to me’. But if someone depends on you financially, it’s a topic you can’t avoid. There are many benefits to life protection. For example, in the event of serious illness or death, it can: Help pay the bills and meet ongoing living expenses. Pay off outstanding debt, including credit cards and the mortgage. Finance future needs, like your children’s education. The good news is that life cover is not expensive and the younger and healthier you are, the more affordable the monthly cost of your life insurance. Choosing the right life insurance cover for you and those closest to you is important and will provide many great benefits. *Source: Zurich Financial Advisors Research Study, July 2020. Reach out today Contact us today alternatively book your consultation https://www.quigley.ie/book-consultation and see how Quigley Financial Brokers can help you choose the best options available or contact richard@quigley.ie for further information.

New research entitled The Cost of Education in Ireland, finds that nearly half of parents surveyed (42 percent) believe their financial situation has been negatively affected by COVID-19 through reduced income and/or increased costs. As a result, almost one-in-four (23 percent) of parents believe they will suffer from increased financial strain in sending their children to school due to the economic impact of COVID-19. Of those surveyed, 60 percent had some form of family savings in place and were able to reduce the financial strain of COVID-19. And over a third (39%) of parents said they are now more likely to create a family savings fund to protect their family against the impact of potential future crises, similar to COVID-19. Commenting on the findings, Jonathan Daly, Head of Life Retail Distribution and Propositions at Zurich said: “The findings from this year’s research highlight the increased financial strain many families are under since the outbreak of the COVID-19 crisis. However, the pandemic has also highlighted the importance of saving money and early financial planning. There is an opportunity now for families to make some of the money-saving habits sparked by the pandemic stick long-term. Opening a savings account when children are under a year old will allow you to prioritise education costs before they become a significant financial burden.” Almost one in four (23%) parents say the cost of rearing their children has increased as a result of the COVID-19 pandemic, while 17% say their costs have decreased. Sixty percent believe their costs have remained the same. A full breakdown of costs can be found on the Zurich website for primary, secondary and college education. Ensuring they can provide for their children’s education, from primary school right through to third level, is a priority for all parents. While education in Ireland is free in principle, the reality is that the costs of education are substantial and continue to rise. With a tailor-made savings plan, parents can gradually build up the funds necessary to support their children’s education. Zurich encourages people to talk to an independent financial advisor to help set their savings goals, plan their budget, and choose the right plan for their family. Reach out today Contact us today alternatively book your consultation https://www.quigley.ie/book-consultation and see how Quigley Financial Brokers can help you choose the best options available or contact richard@quigley.ie for further information.

Whether you’re new to the workforce or you’re years into your career, it’s likely that you’ve thought about starting a pension at some stage. If it’s something you’ve yet todo, the prospect can be a bit daunting – but it doesn’t have to be. Starting a pension doesn’t have to be complicated. There is a huge amount of advisors and financial brokers available to help. They’re more accessible than they’ve ever been before. There’s no reason to not find a way to get to a pension. So, where exactly do you begin when planning for your future? First things first, what exactly is a pension? Understanding what a pension is pretty simple. A pension is basically a savings plan. The idea is to save money into the pot and this is the money you use to help you live on when you retire.” This money is then invested in funds, allowing it to grow over time. The State gives you a pension if you have enough PRSI contributions. The maximum State pension at the moment is just under €13,000 per year. So the idea is to save for your own private pension separate to the supplement that they give you. I already have a savings account. How is a pension any different? While a pension operates as a savings plan, there are many benefits to having one rather than just putting the money away yourself into a regular savings account every month. There are lots of benefits to starting a pension. The main benefits really are that you’re prepared for the future, and it can give you flexibility as to when you want to retire. You might decide to retire early, or that you never want to retire. It’s whatever works for you. On top of that, pension contributions offer tax relief. Having a pension is the most tax efficient way of saving in Ireland right now. When you save into a pension you can normally get tax relief, at your marginal rate. What’s more, the returns in a pension fund roll up free of tax. When you retire, you can take up to €200,000 of your funds tax free, and the remaining fund is then used to provide an income for you in retirement. I don’t have a lot of cash to spare. Is it really worth my while starting a pension? Start it off as quickly as you can, but start it off at a rate that you can manage. Pensions benefit from the idea of compounding. How do I know which fund to choose? The money you save into your pension is invested in funds, allowing you to accumulate even more savings over time. Choosing a fund is something an advisor or financial broker will help with. You have to look at how much risk you want to take. You’re going to be investing this money from now until you retire, how much risk do you want to take with it? People might be risk averse, but if you’ve got a really long time to invest before you retire, you may be able to afford to take more risk because you’re doing it for a very long time. How do I get started? If you’ve decided to start a pension, we recommend first speaking to your employer to find out what they offer. Most employers will do your pension payment through salary deductions, so you won’t even notice it’s gone. It’s like a direct debit. If your employer doesn’t pay into an employee’s pensions, they’re still obliged by law to offer you access to a PRSA (Personal Retirement Savings Account). The longer you wait to start your pension, the harder it’s going to be to build up the proper funds you need for your retirement. The key really is to start with whatever you can afford. The more you’re putting in all the time, the more it will grow without you even realising it. The information contained herein is based on Zurich Life’s understanding of current Revenue practice as at 31st July 2021 and may change in the future. Warning: If you invest in these funds you may lose some or all of the money you invest. Warning: Benefits may be affected by changes in currency exchange rates. Warning: Past performance is not a reliable guide to future performance. Warning: The value of your investment may go down as well as up. Reach out today Contact us today alternatively book your consultation https://www.quigley.ie/book-consultation and see how Quigley Financial Brokers can help you choose the best options available or contact richard@quigley.ie for further information.

Pre-occupied with running around after your children, you may not have thought about protecting their future. But here’s why you might want to… Ever since your children entered the world, you’ve done everything you can to protect them, giving them endless love and attention. But what about protecting your little ones’ financial futures? You may not have given it too much thought because you’re too busy with your day-to-day lives, but the earlier you start taking steps to securing a happy financial future for your kids, the better. So, next time they’re out on a play date, why not put the kettle on and start planning ways to protect their financial future? Life insurance If life insurance has never been a priority, now that you have a family, it could be the ideal time to make it one. It’s not nice to think about, but having cover in place will help protect your loved ones if something were to happen and they were no longer able to rely on your income. Choosing life insurance Similar to other types of cover, you can tailor your life insurance to suit your needs, choosing from different levels and a range of optional extras. For instance, critical illness cover can be added to your policy so that if you were diagnosed with an illness covered by the plan, you will receive a cash sum tax free. This money can help to relieve the financial worries associated with critical illnesses, covering time spent off work, ensuring you can still pay household bills, and funding specialist treatment. And what would happen if you were forced to take a prolonged period of time off work? You might want to look at adding income protection to your life insurance policy, this would replace some of your earnings if you can’t work. Make a will Again, it’s not nice to think about – but if anything were to happen to you, you want to be certain your family is provided for and cared for by the people you would choose. And that’s why you might want to make a will as soon as possible. You can either write a will yourself, hire a solicitor or use a will-writing service; make sure you research each option thoroughly before deciding, as they all have pros and potential drawbacks. Appoint an executor Part of the process involves you appointing an executor, who will be responsible for carrying out the instructions left in your will. Executors need to be aged over 18 and can be listed in your will, so it could be your spouse or family member. Ultimately, when choosing an executor, it needs to be someone you trust to carry out your wishes in the event of your death. And don’t forget to check that they’re happy to act as executor before you name them in your will. Savings options Now, you might want to start planning how to build a savings pot to help fund your family’s future. Driving lessons and university graduation may seem like a world away, but start putting money away now and you’ll give yourself a good head start. When making decisions that’ll affect your finances, it could be worth speaking to a Financial Broker who will be able to advise you on the most suitable options, you may have to pay for any advice you receive. Reach out today Contact us today alternatively book your consultation https://www.quigley.ie/book-consultation and see how Quigley Financial Brokers can help you choose the best options available or contact richard@quigley.ie for further information.

Starting a pension can seem like a daunting process for many people, but with the right knowledge to hand – and a good Financial Broker. 1. How is a pension different to a savings account? The main difference between a pension and a savings account is the tax relief that pension funds get. Savings are money that has been taxed, whereas a pension is not taxed money. It’s basically money you can get tax relief on. You can get tax relief on the way in, it grows tax free when it’s in there and then, when you go to into retirement, you can take some of your fund as a tax free lump sum. 2. Why should I start a private pension? The State offers a pension of €12,912 per year if you have enough PRSI contributions, but having your own private pension allows you to add further to this and plan for your future. Say you’re working in the private sector and you never took out a private pension, you should be entitled to the State pension. That’s payable nowadays from age 66 – if you have enough PRSI contributions you can get €248.30 a week. Even if you’re only putting €50 or €100 per month into a private pension, it’s something. What I say is, ‘will you be able to live off the State pension?’ If you’re earning €70,000 and then you retire and have to live on €12,912 a year, there’s a huge drop in that. 3. When should I start a pension? When it comes to starting a pension, it’s never too early – or too late. You’re never too young to start a pension. It doesn’t mean you need to put all your money in, but it comes down to affordability and your retirement income goal. The sooner you start, the sooner your pension is invested and compounding and the less you have to put into your pension later in life. Once you start, you’ll keep going. 4. How do I know how much risk to take? The money you save into your pension is invested in funds, meaning its value has the potential to grow over time. By speaking to a Financial Broker you can decide what level of risk best suits you and your situation. People worry about putting their money at risk. Risk exists in any investment you make. I would suggest speaking with a Financial Broker to discuss the level of risk that you’re happy with. Everybody’s different, and that’s why you should get financial advice when deciding which funds to choose. Someone might think they should go for a low risk fund, but they might also have 30 years to go until retirement. Over time, inflation could eat into the purchasing power of their money and investing in a higher risk fund could actually be more appropriate. Choosing the right fund depends a lot on the individual themselves. If somebody was going to retire next year, maybe they should be low risk. But if you’re in your 30s and have 30 years until retirement, a higher risk fund might be more suitable. 5. What happens if I move country or change job? If you’re hesitant to start a pension because you might move abroad, or you don’t plan on staying in your current company for very long, it’s important to remember that pensions are flexible. You see it with a lot of multinational companies in Ireland, people are over to work in Ireland and they might decide to move back home. They might not start a pension with this in mind, but once they get talking to a Financial Broker, they’ll realise they won’t lose their pension if they do move. If they can’t move the pension to the country they’ve moved to, they could draw down from Ireland into their bank account. So your pension is always yours. You don’t lose it. There’s also the option to adapt your pension as your life changes. You can stop, start, increase, decrease it whenever you’d like. Sometimes people might say, ‘oh, I’m not going to stay in this job for a long time. I’m not going to set up a pension.’ But I wouldn’t let that hold anybody off either. Pensions can be flexible as well. The information contained herein is based on Zurich Life’s understanding of current Revenue practice as at September 1st 2021 and may change in the future. Warning: If you invest in these funds you may lose some or all of the money you invest. Warning: Benefits may be affected by changes in currency exchange rates. Warning: The value of your investment may go down as well as up. Reach out today Contact us today alternatively book your consultation https://www.quigley.ie/book-consultation and see how Quigley Financial Brokers can help you choose the best options available or contact richard@quigley.ie for further information.