1. The Cost of Delay Eugene Raftery PenPro email eraftery@penpro.ie
14 Priory Hall Landline
Stillorgan Mobile
Co. Dublin
Eugene Raftery Penpro Ltd.

2. What is a Pension? Deferred Income
Income you put off earning today in order to have income later when you have retired and are no longer working
The need to enhance any State Pension entitlements
To claim Tax Relief today
To get growth on your and the Taxman's money without paying DIRT
To build up a pot of money. You and the Taxman
Eugene Raftery Penpro Ltd.

3. State Contributory Old Age Pension
Currently €11,975 pa € pw
With dependent adult €22,703 pw *
Based on having paid PRSI contributions. (Correct number and correct type)
* Means tested
Eugene Raftery Penpro Ltd.

4. Drop in income if relying solely on State Pension
pensions
Current Income
€40,000
€50,000
€60,000
If Single
€11,975
If Dependent Spouse
€22,703
45%
56%
63%
70%
77%
80%
Eugene Raftery Penpro Ltd.

5. Replacing your income - % of salary needed
The cost of delay
pensions
Replacing your income - % of salary needed
Target of 2/3 age 65
19%
24%
32%
43%
62%
102%
15%
Age
Now 25 30 35 40 45 50 55 65
Eugene Raftery Penpro Ltd.

6. Age when starting Pension Pension as a Percentage of Salary
The earlier you start
Pension produced by a 20% Contribution
Age when starting Pension
Pension as a Percentage of Salary 30
36% 40
24% 50
13% 60 4%
Eugene Raftery Penpro Ltd.

7. People are living much longer in retirement
It’s just for a few years, isn’t it?
pensions
People are living much longer in retirement
MALE
22 years
18 years
14 years
From
age 60
27 years
22 years
18 years
FEMALE
LIFE EXPECTANCY
From
age 65
From
age 70 5 10 15 20 25 30
Eugene Raftery Penpro Ltd.

8. Tax Relief Full Income Tax Relief Relief either at 41% or 20%
Depends on your rate of tax
Gross Pension Contribution:
€ €100
Tax relief: € €20
What it costs you: € €80
Eugene Raftery Penpro Ltd.

9. Tax Relief Manual Pension Payment €4000 Tax Rebate/Credit €1,640 @41%
Eugene Raftery Penpro Ltd.

10. How do I pay
If you pay through Payroll Tax Relief can be granted at source.
Pension can also be paid manually
31st October is end of previous tax year
Claim back/offset tax from last year
Eugene Raftery Penpro Ltd.

11. What Tax do I pay ? 20% Tax Cut Off points Single Person €32,800
Married – One income €41,800
Married – Two Incomes (€65,600)
Bigger earning spouse €41,800
Lower earning spouse €23,800
Married – Two incomes similar
€32,800 each (same as single person)
Eugene Raftery Penpro Ltd.

12. Pension Contribution Limits
Age % of Gross Earnings
Up to age %
30 – %
40 – %
50 – %
55 – %
Over %
Maximum Revenue Salary €115,000
If pension benefits more than €65,000 pa no relief
Eugene Raftery Penpro Ltd.

13. Types of Pension Plans Company Pension Plan Personal Pension Plan PRSA
Set Up Under Trust
Employer & Employee Contributions
Can be used to provide Life Assurance Cover for staff
Personal Pension Plan
Personal Pension
PRSA
Very similar Personal Pension
Very portable
Employer & Employee can contribute into
Designed by Government
Employees must have access to one if they want
Employer must have a designated PRSA Provider
Eugene Raftery Penpro Ltd.

14. What happens when I retire
Tax Free Cash (Currently €200,000 limit)
If set up under a Company Plan 1.5 times salary (Subject to service)
If set up under a Personal Pension/PRSA % of fund
Balance of fund used to buy a Pension or transfer to an ARF
Eugene Raftery Penpro Ltd.

15. Buying a Pension Pension Rates Female age 65 4.61% Male age 65 4.95%
If you had pension fund of €100,000
(Your contributions, tax relief and growth)
Female Pension €4,610 pa €88 per week
Male Pension €4,950 pa €95 per week
Eugene Raftery Penpro Ltd.

16. Approved Retirement Fund
An ARF means you do not buy a Pension
You retain ownership of the Fund
It can be inherited
No Dirt Tax while in the ARF
You pay normal Income Tax and USC upon drawdown, same as pension income
Eugene Raftery Penpro Ltd.

17. Life Assurance through your Pension
Life Assurance paid under a pension plan can get tax relief on cost of cover
Eugene Raftery Penpro Ltd.

18. Income Protection
Insures your salary if unable to work due to accident or illness
Guarantee a percentage of salary up to 75%
The cost is allowed for Tax Relief
Eugene Raftery Penpro Ltd.

19. Income Protection Benefits and Costs
Age 30 next birthday
Benefit €20,000 pa, €384pw €3.81pw
Age 35 next birthday
Benefit €25,000 pa, €480pw €5.48pw
Age 45 next Birthday
Benefit €35,000 pa, €673pw €10.89pw
Payable after 26 weeks to age 60
Eugene Raftery Penpro Ltd.

20. Thank you and any questions?
Eugene Raftery
PenPro
Landline
Mobile
14 Priory Hall
Stillorgan
Co. Dublin
Eugene Raftery Penpro Ltd.