Fail to Prepare?
If the economic climate of the last decade has taught us all anything, it is that it is never too early to start planning ahead for the future of you, your family, and your business. Often we forget that when the time comes for our retirement from the business world, State Pensions may not offer us the lifestyle we wish to have during the Golden Years of our lives. As such, it is always advised to begin looking into pension options as early in your working career as possible to begin saving for your own future and that of your family. We have spoken in the past about preparing your business for your departure, but preparation of the self can often be overlooked.
A recent report by leading pension actuaries Tony Gilhawley and Roma Burke has found that when it comes to State Pensions and the tax reliefs on same, public servants are the primary individuals who benefit from these reliefs. It is suggested that any movement to reduce tax reliefs may encourage Government workers to seek pay increases which could have consequences in many areas.
According to the report, the State’s contribution to the pension of public servants is on average just under 30%, or 53% for Gardai. This of course applies only to public sector workers engaged in employment before 2013. This is in stark contrast to the average private sector worker who will receive an employer contribution of as little as 7%, if they receive any employer contributions to their pension at all. The leading actuaries even went as far as to state:
“If you want to retire on a good secure pension, don’t work in the private sector. Join the public service.”
Suggesting that the current pensions system in Ireland is somewhat discriminatory against workers in the private sector. The report also suggests that there are incredibly few employers in the private sector willing to make decent contributions to the future pensions of their employees. Whether or not this discrimination is the case, or whether your own company chooses to contribute to your pension it is wise to begin looking into your options and begin making plans for your extended future beyond the working world.
Should you have any queries on any business or personal financial matters, please don’t hesitate to get in touch with us here at EcovisDCA, where we are always happy to help.