Presentation on theme: "Women in Agriculture 2008 ‘Start planning your pension now’ Wednesday 15 October 2008 David Malone Head of Information Services The Pensions Board."— Presentation transcript:
Women in Agriculture 2008 ‘Start planning your pension now’ Wednesday 15 October 2008 David Malone Head of Information Services The Pensions Board
Established by the Pensions Act, 1990 Operations: Supervision, regulation and enforcement Policy, legal and actuarial Information and awareness
National Pensions Action Campaign 2008 Women and Pensions
A Changing World People are Living Longer More Contract Work More mobility in careers Changing work patterns More Part Time Working Single Parent Households Smaller Families Separation/Divorce
Changing demographics 200620262056 No’s at Work 2,000,1002,268,0002,125,000 Aged over 65 464,000844,0001,532,000 No’s at work per person over 65 184.108.40.206
Women & Pensions 50% of women in the workforce have a personal pension *Source: CSO Quarterly National Household Survey Update 2008
Where will your income come from when you retire? State Social Welfare Pension 2008 €223.30 per wk or €11,611 per yr Pension = Income in Retirement …….will this be enough to meet your needs in retirement?
Reasons for putting it off 36% said they couldn’t get around to organising a pension 18% felt they couldn’t afford a pension, citing the following reasons: nature of employment mortgage /loans/debts childcare/ caring payments and responsibilities majority had difficulty understanding the tax on pensions 40% admitted to giving very little thought/no thought to their income when they retire Source of statistics: Red C Consumer Market Research 2008
To provide regular income in retirement, or early retirement due to ill-health Tax Reliefs Part of your retirement benefit may be paid as tax-free cash sum Pension schemes do not pay income or capital gains tax on investment returns Provision of lump sum benefit income for surviving dependants Income Tax and PRSI relief on employee contributions Why have a pension?
You’re Never too Young or too Old Tax Relief on Personal Contributions The maximum contribution rate as a percentage of total pay/net relevant earnings on which you can receive tax relief is: Highest age at any time during the tax year Limit Under 30 15% 30-39 20% 40-49 25% 50-54 30% 55-59 35% 60 and over 40% Notes: Contributions will also be relieved from the PRSI and the Health Levy, if you pay these charges. For tax purposes these contributions are limited to earnings up to a maximum of €254,000 in any year.
Company Pension Schemes (99,802 schemes with 800,398 members - €90 billion in assets approx.) Personal Retirement Savings Accounts (PRSAs) (Over 140,000 PRSAs with asset value of €1.24 billion- June 2008) Personal Pension Plans and Retirement Annuity Contracts (RACs) (In excess of 200,000 contracts – Irish Insurance Federation) Voluntary regime for supplementary pension provision Types of Irish Private Pensions
Pensions on Separation or Divorce Your pension entitlements arising from an occupational or personal pension arrangement may be affected by separation or divorce Pension Adjustment Orders (PAOs) are used to designate part of the pension benefits to a non member spouse or a person representing a dependent child.
Pensions in the workplace A good pension scheme has been long recognised as a very valuable asset for both the company and its employees. There is a stronger commitment from employees to participate in pension schemes where the employer makes a contribution. A company benefits from having: –a reputation and respect as a good employer. –a workforce that feels valued and important –increased loyalty and commitment from staff –an enhanced staff recruitment, reward and retention package
Employers’ Obligations/ Opportunity Access for all Employees –By law an employer must provide ALL employees with some form of access to a pension, whether they are in full-time, part-time, temporary, contract or casual employment. –All employers regardless of the size of their workforce are obliged to provide access to a Standard PRSA if those employees fall into the category of “excluded employees” –Pensions Board also encourages all employees to ask the employer about their pension rights