Monday 19 March 2018

Never too late to make old age comfortable

BUSINESS development manager Jackie Martin took a look at her finances recently and decided she needed to do more to provide for her retirement.

Ms Martin, who works for an American credit card company in Dublin, took the decision to top-up her company pension with additional voluntary contributions (AVCs) in a bid to make sure she has a comfortable retirement.

The mother of a grown-up daughter is in her early 50s, but did not have a pension until recently.

"Basically, I did not consider a pension until about 12 or so years ago. Now I am getting concerned about retirement."

The North Dublin resident started her first pension 12 years ago when she worked for IBM. When she left the company five years later, she became a deferred member of that pension plan.

She then worked for a small company for a couple of years before joining her current employer where she has worked for the last five years and has paid into its pension scheme.

Concerned that she now needs to do more to provide for a decent retirement, Ms Martin sought advice from a pension adviser in her Bank of Ireland branch on how she could top up her pension independent of her current employer.

On foot of that she started an AVC using a personal retirement savings account (PRSA) plan with Bank of Ireland Life, into which she pays €200 per month.

She will benefit from higher-rate tax relief on her pension savings as she pays tax at the marginal rate. Her €200 pension savings will cost her €118 as she will get €82 back from the Government when she files her annual tax return by October 31 every year.

"If you can afford it it is a good idea to put away a bit of extra money for retirement," she says.

Irish Independent

Business Newsletter

Read the leading stories from the world of Business.

Also in Business