They say that 50 is the new 30, while you might still feel young - you are in a transitional period, your priorities are shifting, and retirement is no longer a million miles away.
After years of hard work you are at, or getting close to, your optimal earning level. Hopefully this will give you a little bit extra financial leeway to make sure that you have saved enough to maintain (or improve!) your current standard of living when you stop earning.
Given the trend throughout Ireland’s recent economic downturn which saw people delaying starting their pensions - you might still be putting off getting started.
Don’t worry, it’s not too late to start saving, and preparing for a (relatively) carefree retirement.
The Government know that Ireland is facing a potential pension time-bomb as the country’s population ages - and more people plan to draw the State pension.
To help catch up most people are eligible to for income tax relief of up to 20% on the money that they save in a pension - and this figure can be as high as up to 35% of your annual income.
So for example, if you earn €60,000, you can invest up to €21,000 (35% of €60,000) and receive income tax relief on this contribution, resulting in a net cost of €16,800 at 20% income tax relief or €12,600 at 40% income tax relief.
When you factor in these tax incentives the cost of making a meaningful monthly contribution to your pension starts to feel a lot less intimidating.
Beginning a private pension doesn't have to be a difficult process.
Recent research carried out by Irish Life found that almost one third of people admitted that they don’t really understand pensions - this is part of Ireland’s pension problem.
Getting started doesn’t have to be a scary process - you are only a few clicks, or taps away from Irish Life’s easy-to-use pension calculator on any device. We have found this to be a good first step in mapping-out a pension plan. http://bit.ly/1Mv6pNb
Once you’ve got a feel for the numbers, - you can sit down with a financial advisor or broker and decide what type of plan will work best for you.
And if you are already saving - it might be time to review your plan, maybe you have that extra money left over at the end of the month and you want to save more. You can schedule at meeting at any time with a financial broker or adviser to discuss your options.