Good reasons to start pensions!
1. The taxman will give you a helping hand
For every euro you pay into your plan, the taxman will currently give you 20 cents back, so it only costs you 80 cents. If you’re a higher rate taxpayer, it’s an even better deal. You’ll currently get 40 cents back, so each euro you pay into your plan will only cost you 60 cents. These amounts are based on income tax rates of 20% and 40% (as of March 2019).
2. Your payments can grow tax-free
The money in your pension plan can currently grow tax-free – so it should have the potential to grow faster than in other types of savings plans that are subject to tax.
3. You can draw a tax-free cash sum at retirement
When you retire, you can currently take part of your pension fund as a tax-free lump sum (subject to a lifetime limit of €200,000*). This can enable you to do those things you’ve always promised yourself.