Pension Advice in Ireland Greenway Financial

Pension Planning Made Easier

We are a team of qualified financial advisors who can help you make the best decisions for your pension plan. With our pension advice service, you can relax and enjoy your retirement years with less worry about money.

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Pension Planning Services in Ireland

The state pension alone may not be enough to support your lifestyle when you retire. This is why investing in a private Irish pension plan is a great solution. Whether you are an employee, self-employed, a company director or already retiring, you need to plan for retirement. 

Our financial advisors help you choose the right pension plan by comparing multiple options and finding the right one. You will save time and have a clear understanding of your options.

If you already have a pension, we can review it and advise you on getting the most from it.

pension advice ireland

Setting up pension funds

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retirement Needs

We assess your income needs in retirement and what you can afford to put into your pension.

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Measure Risk

We’ll complete an attitude to risk profile to find investment funds that you are comfortable with.

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Our Advice

We’ll make recommendations on products that are suitable for your personal circumstances.

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Setting Up

When you make your decision we’ll complete all your paperwork and ask you to review and digitally sign.

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Pension Running

You can access and review your fund performance. We are available to answer any questions you may have.

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Quartlery review

We review every pension account 4 times a year. We may make suggestions  to maximise your fund.

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retirement Needs

We assess your income needs in retirement and what you can afford to put into your pension.

$

Measure Risk

We’ll complete an attitude to risk profile to find investment funds that you are comfortable with. 

"

Our Advice

We’ll make recommendations on products that are suitable for your personal circumstances.

!

Quartlery review

We review every pension account 4 times a year. We may make suggestions  to maximise your fund.

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Pension Running

You can access and review your fund performance. We are available to answer any questions you may have.

#

Setting Up

When you make your decision we’ll complete all your paperwork and ask you to review and digitally sign.

What Is A Pension?

A pension is an investment fund in which a pension member makes contributions during their lifetime. The goal is to save money in the long run and then use that money as income after retirement. To learn more about the reasons to start a pension, click here.

How do pensions grow? Your pension contributions are invested in a wide range of funds. As the fund performance goes up and down, monitored by the fund managers, your pension value changes. This gives your fund a great chance to beat the low rates of deposit interest, and reduce the effect of inflation on your pension.

Pensions have 3 types of tax relief! Your fund grows tax free until you take your pension benefits, the only kind of investment account that can do this. When you retire, you can take a tax-free lump sum of up to 25% of your fund. While you’re saving, your contributions reduce your own income tax, making a pension the best value long-term savings product. 

Click here to learn more about your personal tax relief.

At retirement, you take your pension benefits and choose how you’ll use your fund to provide an income in retirement. Several options are available to you.

How Do Pensions Work in Ireland?

Stage 1: Building your pension fund

How much money?

A pension aims to replace your working income once you retire.

It’s essential to know what your costs are, and how much income you’ll need on top of the State Pension. Although some of your costs will change when you retire, generally, people like to keep the same standard of living that they have during their working life.

Fix Your Monthly Contributions

To reach the final amount of money, you must contribute monthly or yearly to your pension plan.

After investing a % of your income in your pension, you should still be able to cover your regular expenses and also be able to save money. Your pension is a savings fund, but you can’t access it for a long time. 

A financial advisor can help you determine how much is reasonable to invest each month.

Pick A Fund

The type of fund you choose depends on your situation, age, and the level of risk you are comfortable with.

When you have a work pension, your employer scheme usually has a range of funds for you to choose from. However, you can have more funding choices with personal pensions.

Example 1: Low-Risk Investment

  • Lisa is 25 years old.
  • Plans to retire at 67.
  • Lisa earns €31,000 per year.
  • She puts 15% of her salary in her pension each year.
  • Over 40 years, Lisa invests €186,000 in her pension. 

In a low risk pension fund, her fund could build to €190,307, but could be as low as €152,408.

Lisa has an 11% likelihood of getting back more than she invested. 

Lisa’s big risk is that her fund won’t outperform inflation. Because Lisa is young, she should explore higher risk funds, while her fund has time to recover from volatility.

Example 2: Mid-Risk Investment

  • Brian is 25 years old.
  • Plans to retire at 67.
  • Brian earns €31,000 per year.
  • He puts 15% of his salary in his pension each year.
  • Over 40 years, Brian invests €186,000 in his pension. 

In a medium risk pension fund, his fund could build to €458,731, but could be as low as €171,550.

Brian has a 92% likelihood of getting back more than he invested. 

Brian may wish to move to lower risk investments as he approaches retirement.

Example 3: High-Risk Investment

  • Sam is 25 years old.
  • Plans to retire at 67.
  • Sam earns €31,000 per year.
  • She puts 15% of her salary in her pension each year.
  • Over 40 years, Sam invests €186,000 in her pension. 

In a high risk pension fund, her fund could build to €1,087,737, but could be as low as €139,981.

Sam has a 87% likelihood of getting back more than she invested. 

 

Sam’s big risk is that her fund could lose value right before her retirement, due to the volatility of her investments. She can switch to medium risk funds as she approaches retirement.

Watch Your Pension Funds Grow Tax-Free

Once you’ve set up your fund, all you need to do is contribute monthly and watch your pension grow.

The advantage of pensions is that they grow free of tax until you decide to draw your retirement benefits. However, there are management charges on your fund, which vary depending on your chosen pension product.

Pension Providers in Ireland We Work With

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zurich pension
new-ireland-life-insurance-mortgage-protection-pension

Book Your Free Initial Pension Consultation Now

Step 1: Contact Us

Contact us by phone at 01 853 2727. You can also book a consultation here.

Step 2: Information

Our advisors will take some information about your situation from you.

Step 3: Advice

We offer you fair and balanced advice about how to achieve your goals.

Book your call now

Start your pension journey.

FAQs About Pension Planning in Ireland

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What is a Pension?

Pension funds are investment products, which means that the value of your fund can fall as well as rise. Most pensions are Defined Contribution Schemes, where you’re committing to contributing a certain amount per month or per year.

Pensions Vs Savings

A pension fund is a superior retirement plan compared to savings for several reasons:

Interest rates are currently very low. This means any funds held on deposit are unlikely to increase in value substantially.

By comparison, Pension funds are designed to be kept for 20 years or longer. You will have no access to many funds until your average retirement age, between age 60-75.

This should give your fund enough time to recover growth if it falls in value. The longer you keep your contributions invested, the more likely your fund will grow in value.

Unlike savings, your pension contributions can be taken from your gross income, before you pay tax, and then continue to grow tax-free. 

Even though cash savings are important, you’ve still paid income tax on this money already, you’ll be charged Deposit Interest Retention Tax on the interest each year.

How do I begin with a pension plan?

Your financial advisor will discuss your financial position with you, including your existing pensions, your salary, and your age. 

You have a maximum tax-efficient contribution you can make each year, which changes depending on your age. Your advisor will help you to figure out an affordable amount to contribute, and estimate what kind of fund this could build.

Usually your advisor will help you to complete a questionnaire that determines your attitude toward risk. This can help you to decide the type of fund to choose.

Your pension provider will have different funds to choose from, categorised based on their risk level. A higher risk fund has the potential for higher returns and greater losses, and vice versa for lower risk funds.

Your Pension Portfolio will also often have a Lifestyle Strategy option, where your pension portfolio’s risk profile is gradually reduced as you approach your retirement age. The objective is to take fewer risks with your pension fund as you’ll need it soon.

How does a Pension work?

Pension funds are used when you retire to provide a source of income in retirement, in addition to the State Pension. According to the CSO, the average full-time wage in Ireland is €37,646 p/a.

The State Pension is roughly €12,911.60 p/a. This is a dramatic shortfall for most people, even if their mortgage has been cleared and they no longer have housing costs.

Your employer may have their own scheme which you can join, where they aim for a fund that replaces a certain percentage of your final salary or an average of your service.

Otherwise, if you’re arranging your own pension provision, you can aim to either replace a certain percentage of your salary, e.g. 60%, or aim to build a fund that is a multiple of your salary, e.g. 12 times your salary.

What's the benefit of pension planning to me now?

While you’re building your pension fund, you can also benefit from Tax Relief on these contributions.

Over your working life, you’re entitled to claim tax relief on your contributions as a % of your salary. This % depends on your age, getting higher as you get older.

For example, contributing €100 could cost you €80 or €60, depending on your income tax rate.

If you’re 40 and earn €55,000 p/a, you could contribute €1,145 per month, at a cost to you of €687.50 per month.

You can see your Tax Relief Limits here at the Pensions Authority website.

Tell me about some reliable pension provider companies.

Greenway can advise and arrange the following pension products:

Get Reliable Pension Advice in Ireland

Pensions must be set up correctly, with the right investment strategy and the best possible costs for you. Our financial advisors work hard to ensure that your pension strategy matches your long-term goals. We spend significant amounts of time researching and negotiating with product providers to find the best pension plan for you.

Retirement and Pension Planning can be overlooked by people in their late twenties, early thirties, or even their forties. So keep in mind that the earlier you begin planning your pension, the more time you will have to build up your savings.

pension advice ireland

Greenway Financial Advisors Limited is regulated by the Central Bank of Ireland. Registered No. C168372