4 Great Reasons Why You Should Have a Retirement Plan
It’s never too early to start planning for your retirement. Below, we have listed 4 reasons why you should start considering your future flow of income.
1. Regulatory Changes
If you are age 55 or under on 1st January 2015, you will be 68 before you are eligible to claim the State Pension (contributory). That’s potentially a three year gap in retirement income!
2. Income Protection
Unless you put a retirement plan in place, your income could drop by nearly 67% when you retire! The State Pension contributory is €11,975 but the average industrial wage is €35,874. This should give you an indication of the difference between the state pension and a well planned pension.
Contributing €100 to your pension fund only really costs you €59 if you pay income tax at the higher rate of 41%.
4. Consistent Flow of Income
A longer life means a longer retirement that you need to fund for. As average life expectancy increases, so does the amount of time we spend in retirement. Your money now needs to last longer.
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