A solid plan is invaluable when it comes to financial matters and that's certainly true when it comes to your pension and retirement. Before you retire, there are a few things you should consider:
Many people consider whether or not they have saved enough for their retirement. The amount of money saved for your retirement fund will depend on the lifestyle you would like to have once you retire. If you're approaching retirement age and you feel your retirement fund may not be as large as you wish, there are some things you could do. You may be able to make an Additional Voluntary Contribution (AVC) to your pension which could help increase your fund amount in a tax efficient way. If you're unsure about whether you retirement savings are sufficient, call our Financial Planning Team on 1850 804 164.
When can I retire?
Deciding when you can retire or if you should continue to work is an important consideration when planning your retirement. The age at which you retire will determine how much money you need to save and the amount of time you will have to build up your retirement fund. Many people decide to delay their retirement, or even decide to work part-time after they retire. Your employment contract may state when you must retire, so you should consult this first before you make any decisions. If you decide to continue working after you retire you can still collect your pension, or you may also be able to defer your pension for a number of years.
Accessing your retirement fund
When deciding how you would like to receive your pension income, there are a few things to consider. The type of option you choose may depend on your pre-retirement policy conditions. It will also depend on how much you have saved in your retirement fund, the type of pension you have, and your own personal preferences whether it be an ARF or an Annuity. Choosing how and when you would like to receive your retirement income is an important decision and it makes sense to have all the information and advice on hand to guide you through the process. Call our Financial Planning Team on 1850 804 164, they will happily guide you through your options.
People often worry that a change in circumstances could impact their retirement fund and often ask what will happen to their partner should they die? If you die before your retirement your pension fund may, for example, be paid to your estate (subject to the rules of the scheme). It may be free of income tax, although your estate may have to pay inheritance tax. If you die after you retire, there are a number of outcomes. If you have a pension, it may, for example: continue to be paid to your partner, be paid to your partner as a lump sum or be paid to your partner as a percentage of your pension payments. If you have funds left in an ARF/AMRF, the ARF/AMRF will become an asset of your estate. It's a good idea to seek financial advice so you are clear about all possible outcomes.
The information contained herein is based on Zurich Life's understanding of current Revenue practice as at June 2017 and may change in the future.