Pensions

JOC’s aim is to help you achieve the lifestyle you desire upon retirement, through relevant pension planning. Having a pension is vital for providing adequate finances when one retires. Remember that the state pension, currently €248 a week, represents a 62% decrease in income at retirement, from the average industrial wage of €647 a week. Tax relief: The government encourages everyone to contribute a pension as they allow generous tax breaks for those who invest. For those earning in the higher tax band category, 40% tax relief is provided on each contribution, and 20% tax relief for those paying the lower tax band rate. For example, Mary aged 40 is an employee whose employer provides an occupational pension scheme. She earns €50,000 a year, pays €200 a month into her pension along with another €200 paid by her employer, receiving back €80 (40% of €200) tax relief at source. Mary therefore pays €120 out of her own wages every month, but over 3.3 times of this payment (€400) is invested into her pension fund!