Have you thought about your retirement

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(No Transcript)
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• Have you thought about your retirement ?
• Have you thought how you are going to pay for
  your retirement ?

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current state pension rates
pensions
Can you rely on the State Pension only ?
Retirement Old Age Contributory Pension Payable
weekly from Age 66
These are current rates from January 2003
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Drop in income if relying solely on State Pension
pensions
20,000
Current Income
25,000
30,000
If Single
If Dependent Spouse
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Its just for a few years, isnt it?
pensions
People are living much longer in retirement
From age 60
LIFE EXPECTANCY
From age 65
From age 70
25
30
5
10
20
0
15
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The cost of delay
pensions
Replacing your income - of salary needed
Target of 2/3 salary _at_ age 65
Age Now
25
30
35
40
45
50
55
65
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Never been easier to start than now
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PRSA

• Simple complexity has been taken away
• Convenient deducted straight from your pay
• Portable take with you if you move jobs
• Flexible change the amount you save
• Low charges no big up-front charges
• Tax reliefs the big incentive !!!

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the tax-efficient way to save - tax relief for
PRSA
pensions
Cost to the Gov
YOU GET FULL TAX RELIEF
480
1,000 invested
Cost to you
520
You get full tax relief of 42 and PRSI relief of
6
Tax relief is limited to contributions which are
based on a percentage of your salary dependent on
your age. The tax rate quoted is the top rate for
the year 2003. You must be eligible to take out a
pension in order to claim relief.
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the tax-efficient way to save - tax relief for
PRSA
pensions
Cost to the Gov
Cost to the Gov
GROWS TAX-FREE
YOU GET FULL TAX RELIEF
420
480
1,000 invested
1,000 invested
Cost to you
Cost to you
580
520
You get full tax relief of 42 and PRSI relief of
6
AT RETIREMENT YOU HAVE A LARGE LUMP SUM
42
Tax relief is limited to contributions which are
based on a percentage of your salary dependent on
your age. The tax rate quoted is the top rate for
the year 2003. You must be eligible to take out a
pension in order to claim relief.
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the tax-efficient way to save - tax relief for
PRSA
pensions
Cost to the Gov
GROWS TAX-FREE
YOU GET FULL TAX RELIEF
480
1,000 invested
Cost to you
520
You get full tax relief of 42 and PRSI relief of
6
25 can be taken TAX-FREE
AT RETIREMENT YOU HAVE A LARGE LUMP SUM
The other 75 is TAXABLE
Tax relief is limited to contributions which are
based on a percentage of your salary dependent on
your age. The tax rate quoted is the top rate for
the year 2003. You must be eligible to take out a
pension in order to claim relief.
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the tax-efficient way to save - tax relief for
PRSA
pensions
Cost to the Gov
Cost to the Gov
GROWS TAX-FREE
YOU GET FULL TAX RELIEF
420
480
1,000 invested
1,000 invested
Cost to you
Cost to you
580
520
You get full tax relief of 42 and PRSI relief of
6
25 can be taken TAX-FREE
AT RETIREMENT YOU HAVE A LARGE LUMP SUM
Take an income
The other 75 is TAXABLE
OR
Take the cash
Unless you have a guaranteed income of 12,700,
63,500 of your fund must be invested into an
approved minimum retirement fund
Tax relief is limited to contributions which are
based on a percentage of your salary dependent on
your age. The tax rate quoted is the top rate for
the year 2003. You must be eligible to take out a
pension in order to claim relief.
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PRSA

• PRSA

Fund Growth
Your Contributions
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PRSA

• PRSA

_
Fund Growth


Your Contributions
PRSA Charges
Retirement Fund
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Standard PRSA charges

• Regulators have capped charges at
• 5 of every premium paid, and
• 1 of the value of your fund every year

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Investment Approach

• All pension funds invest in shares
• Shares tend to perform well over longer periods
  but can be volatile over shorter terms
• Some fund managers are better than others
• But the ones that are great now may not be great
  when you retire !!!

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Investment Approach - as you near retirement

• You need to move your fund out of shares as you
  near retirement
• Dont worry the Insurance Company will do this
  for you by gradually moving your fund into the
  more secure Fund

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How much should you save ?

• How much income do you want to retire on ?
• State Pension of
• 8,180 (single)
• 14,498 (with adult dependant)
• How much would it cost to provide an additional
  income of 10,000 a year (in todays terms) from
  age 65 ?

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MALE - 10,000 pa income at age 65
Net cost based on income tax relief of 20 (A)
and 42 (B)
Gross
Current Age
Net
25
185 pm
30
233 pm
35
301 pm
40
396 pm
45
529 pm
50
754 pm
Assumes an investment return of 6 a year,
premiums indexing at 5 a year and inflation of
3 a year. Income in retirement also indexes
at 3 a year. PRSI relief on contributions of 6
also assumed.
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FEMALE - 10,000 pa income at age 65
Net cost based on income tax relief of 20 (A)
and 42 (B)
Gross
Current Age
Net
25
205 pm
30
259 pm
35
334 pm
40
440 pm
45
588 pm
50
839 pm
Assumes an investment return of 6 a year,
premiums indexing at 5 a year and inflation of
3 a year. Income in retirement also indexes
at 3 a year. PRSI relief on contributions of 6
also assumed.
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What now ?

• Decide that now is the time to start !
• ltContact us at 056 28830 or email us and we will
  send you a questionnaire and a packgt
• Read pack so you understand your PRSA
• Decide how much you want to retire on
• Look up Ready Reckoner to see how much it costs
• Complete application form in pack