An Intact Guide To Retirement Planning in Ireland

Retirement Planning

An Intact Guide To Retirement Planning in Ireland

Welcome to Money Maximising Advisors Limited, your trusted partner in succession planning and retirement planning Ireland. Planning for retirement is something that we often put in the back of our minds. And for some, it’s not even properly thought about until it’s too late. 

If you want to lead a thriving life after your retirement, you need to consider seeking Retirement Planning Limerick, Ireland as soon as possible to build a concrete plan for your retirement. Whether you’re a young professional, a mid-career individual or nearing retirement age, securing your future demands careful financial planning.

In this in-detailed guide, we will explore the ins and outs of retirement planning Ireland in 2024. From understanding your retirement options and pension schemes to creating a robust financial plan and retirement advice Limerick – here we will cover everything. 

At MMA, our goal is simple: to equip you with the knowledge and tools requisite to make informed decisions about your financial future.

So, without any further ado, let’s embark on this enlightening journey together. Get excited to discover how you can secure your future through effective retirement planning. And remember, it is always essential to consult with professional financial advisors who can tailor advice for your unique circumstances. Get in touch with the team at MMA for personalized retirement advice Limerick, and take your first step towards stress-free retirement.

Comprehending Retirement Planning

Before we begin anything, we need to first understand the importance of financial planning. In essence, financial planning is nothing but a roadmap that guides you towards your financial goals. It features assessing your current financial situation, setting realistic goals and strategizing a plan to achieve them.

You need to start by understanding your income and expenses, assets and liabilities. Knowing where you stand financially will aid you in setting realistic retirement goals and identifying areas that need attention. 

In tandem, you also need to familiarise yourself with the retirement age and eligibility criteria in Ireland. 

The next thing to think about is – how you want your retirement to look like. Do you envision yourself travelling to new places, pursuing your hobbies, or simply enjoying a relaxed life? Determining your after-retirement plans will help determine how much money you will need to save and how to allocate your resources wisely.

Now, you need to create a retirement budget. This budget will help track your income and expenses during retirement, allowing you to make informed decisions about your finances. Consider factors like pension income, investment returns and other sources of income. A well-structured retirement budget ensures that your retirement funds are allocated correctly, giving you financial stability throughout your retirement years.

Financial planning is an ongoing process. Circumstances change, and your financial plan must adjust accordingly. Regularly review and consult professionals for retirement advice Limerick and ensure your financial plan is well-suited to your retirement goals.

Types Of Pension Plans In Ireland

To create the right pension plan, you first need to understand various pension plans and then make informed decisions about securing your retirement. Mentioned below are some of the main types of retirement plans available in Ireland.

1. State Pension: The Irish State Pension is a crucial part of retirement income for many individuals. Individuals who are eligible for state pensions start receiving their pension once they reach the retirement age of 66. 

Furthermore, state pensions are of two types: contributory and non-contributory. The former pays a larger payout than the latter, but the eligibility threshold is also higher.

2. Occupational Pension Schemes: Occupational pensions are offered by employers and offer an additional source of income for retirement savings. The age limit for occupational pension is generally between the ages of 60 and 70 and can also be fixed by the employer.

Occupational pensions are of two types:

3 .Defined Benefit (DB) Plans – where the pension amount is determined by a formula based on your salary and years of service.

4. Defined Contribution (DC) Plans: where both the employer and the employee make contributions to an individual pension account.

5. Personal Pensions: This pension plan offers individuals flexibility and control over their retirement savings. Personal pensions are available to self-employed people who are taxed under Schedule D or are non-pensionable employment taxed under Schedule E.

6. Personal Retirement Savings Accounts: PRSA are available to everyone who has a PPS number resident in the Republic of Ireland. The retirement age for PRSA is generally between 60 to 75 years old. But, like other pension plans, you may be able to retire or draw down your personal pension before the age of 60 if you’re seriously ill or unable to work.

Considering all these retirement plans will help you develop a well-rounded strategy. Each plan comes with its own set of advantages and challenges. So, it’s essential to consider them mindfully to understand which options align with your financial goals and circumstances.

Not -to forget, retirement planning in Ireland, or succession planning, is not a one-size-fits-all approach. Therefore, it is advisable to consult with professionals who can provide personalized advice based on your retirement situation. Money Maximising Advisors Limited is here to offer expertise and retirement advice Limerick to guide you through the process of selecting the right retirement plans for your needs.

What Are My Retirement Options?

Talking about retirement planning Ireland, one of the most important things to consider is – what you plan to do with your pension once you reach the retirement age. You have three options:

Taking a Lump Sum

In this option for retirees, you can claim a lump sum from your pension with favourable tax-relief options. When you retire, you can take up to 25% of your pension fund as a tax-free lump sum.

Buying an Annuity:

The next popular option is to buy an annuity, which is a financial product offered by insurance companies, and it comes with a guaranteed income stream for life.

Investing in an Approved Retirement Fund (ARF):

An ARF is a post-retirement investment option that allows you to keep your pension fund invested after retirement – Money Maximising Advisors Limited providing you the opportunity to continue growing your retirement savings and manage your investments actively.

Talk to us at +353 91 393 125

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Or visit our office at Unit 3, Office 6, Liosban Business Park, Tuam Rd, Galway, Ireland

Read Also- Your Comprehensive Pensions Advice Mayo Guide


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