The issue of retirement and the age at which workers can expect to exit the workforce were at the centre of the 2020 General Election campaign in Ireland. As the population ages and more people arrive at a pensionable age, the issue of planning for that eventuality has come to the fore in Irish business.
Irrespective of age, everyone should be considering how they will fund their retirement. We are living longer and retirees are more active than any of their predecessors thanks to advances in medicine and the overall quality of life in the country.
In this blog from Áine Kiely O’Donnell, we ask 10 questions that everyone should be considering when thinking about a pension.
Have you considered how to plan for your retirement?
A solid plan is invaluable when it comes to financial matters and that’s certainly true when it comes to your pension and retirement.
If you retire at 65, what then?
- Are you in employment or Self-Employed, Sole Trader, Partnership or a Company?
- Succession planning is a process that takes time and effort – have you considered your options?
- What are the best options for your future and the future of your business?
- Retiring from the business? – what is the best option to retire out of the business? Have you considered how future involvement in the Business/Farm could be accommodated?
- What do you want from the business, what is your exit strategy and what do you want to move forward?
- Pension planning – what are your options?
- Have you considered the Tax implications of your decisions in relation to your retirement? Capital Gains Tax, Capital Acquisitions Tax, Stamp Duty and Income tax implications can be managed efficiently with tax planning.
- Are you aware of the tax reliefs are available to you? Agri/Business Relief. Tax relief on your pension contributions. Tax free investment growth. Tax free lump-sum on retirement.
- What is the best way to make provisions for your family?
- How can you ensure you maintain your required standard of living in your retirement? Making the right decision at this point is key to your lifestyle in retirement.
Do you want to wait until 65 to retire?
- The choices you make will have an impact on the income you will get when you retire and the lifestyle you will be able to afford.
- Can you sustain your current employment into your 50’s and 60’s – farming, construction and other ‘labour intensive’ activities might not be sustainable on an ongoing basis as you get older. Therefore, you need to consider the age at which you might no longer be able to work at those activities.
Our advice is to plan ahead, think early about retirement, so that you will have some options in the future.
Do you need independent advice?
Call AAL now on 052 6137775 or complete the form and we will get back to you. Retirement planning is one of the most important things that any of use can do for ourselves. Talk to us and get independent, impartial advice.