The Future for Pensions

Pensions and Retirement Planning are currently going through a Revolutionary change. It has never been more important to review your retirement planning. More important than having a planned retirement income is the importance of ensuring its adequacy. This is even more critical given the recent proposed legislative changes to private and State Pension.

• Reduction in tax reliefs. 41%-33%. This could be the last year to claim relief at 41%. For those who currently qualify for 20%, tax relief will rise to 33%
• 20% tax will apply to Tax Free Cash in excess of €200,000. While it was originally anticipated to apply from 2014, it now appears that this may apply from the budget next December.
• In addition, the extension of ARF/AMRF flexibility to all Defined Contribution arrangements is seen as very welcome. However, it is anticipated that the minimum income requirement will increase by 50%. This means that the qualifying rules will be more onerous
• The State Pension age will be increased gradually to 68 years. Beginning in 2014, from 65-66, increasing to 67 in 2021 and to 68 in 2028. If you pension income is state pension integrated, this will affect you? Your retirement income will be €11,995 less per annum for up to three years (until age 68)
• Many services are under the spotlight in an attempt to improve our national budgeting position. We cannot rule out further change (cutbacks) in the future

If you wish to have your Pension Fund reviewed, please contact us email to This e-mail address is being protected from spambots. You need JavaScript enabled to view it   or by phone on 071-9194000.

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“ The information in this news item is the opinion of the author and is not intended for use when reviewing the appropriateness of a particular investment or pension products to an individual’s financial needs and circumstances.’’