Did you know
that for every €1,000 you put into your retirement fund, it actually only costs you €590 if you are paying income tax at the top rate.
Tax relief is available to self employed schedule D (case 1 or 2) or Schedule E non pensionable. For more information see page 3. These rates are correct as at August 2012.
Subject to an earnings cap of €115,000 you can contribute up to a certain percentage of your salary, and claim income tax relief, depending on your age.
Pension income in retirement is subject to income tax at your highest rate on withdrawal, Universal Social Charge, PRSI (if applicable) and any other charges or levies (tax) applicable at that time.
Warning: If you invest in an AMRF you will not have access to your initial investment amount until age 75.
Your options at retirement
OR a combination of all three options can be taken with the remaining 75% of the fund.
* Unless you have a guaranteed pension income for life of €118,000 a year when you retire, €119,800 of your fund must be invested into an approved minimum retirement fund (AMRF). Growth from your AMRF can be taken at any time, however the original investment amount cannot be withdrawn until age 75, unless it is used to purchase an annuity or you start receiving a guaranteed pension income for life of €18,000 a year form other sources. Any amount withdrawn from the AMRF will be taxed as income.
Should you want to review your options or need further information, please contact us for more information on 053-9146592.
