How To Use A Pension Calculator
You use a pension calculator by entering a few simple financial details and letting the online calculator do the rest. A good pension calculator will quickly tell you how much money you need to save for retirement and what pension plan may suit you.
A pension is for the future, but you need to save for it today. The more you put away in the right pension plan, the better will be your retirement. You need to know how much to save, where to save it, and what the benefits of starting a pension plan are today.
Using a pension calculator is the best start to getting on the right pension plan.
A good pension calculator will tell you how much to invest in a pension plan and which pension plan could suit you. The right pension calculator will let you plan for different outcomes and give you options for the best pension plans.
The National Pension Helpline pension calculator is easy to use and helps you choose the best plan for your retirement.
Table of Content
How does the pension calculator work?
The National Pension Helpline pension calculator works by searching and comparing the pros and cons of Irish pension plans. The pension calculator asks what you are looking for in a pension and compares your needs with what is available on the pension market.
There are many, many variables in choosing the best pension plan. You could spend hours, if not days, comparing your needs with available Irish pension plans. If you get anything wrong, you could make an error that affects the rest of your life, an expensive error too, which is easy to avoid.
You need to ask the right questions to get the right answers, and that is where a good pension calculator comes into play.
The National Pension Calculator works by asking you the right questions and doing the hard work in the background to give you the best answers.
When can I access my pension?
You can access your pension early from the age of 50. Every pension plan has terms and conditions, but if you meet them, you may access your pension.
To cash in your pension when you turn 50, you must have paid into a private pension plan with a past employer or have a PRSA or an executive pension. You can access 20% of the pension in a tax-free lump sum and leave the balance to grow until you reach retirement age.
If your pension plan has a pot of €1 million, you can access up to €250,000 tax-free when you turn 50 years of age. A pension calculator can help you figure out the how, what, where and when of accessing your pension and put you on the road to making the right decisions.
There are different pension plans in Ireland. The defined contribution pension, the defined benefit pension, the executive pension and the PRSA all have their pros and cons. Accessing your pension figures into all types of pension plans and should be a big part of choosing the best pension plan for you.
The National Pension Helpline pension calculator can help you when looking at pension benefits and the pension contributions you need to make to get them when you retire.
Pension contributions
Pension contributions are what makes for a successful pension plan. If you make the right pension contributions to the right plan, you can look forward to retirement with confidence.
The pension calculator is for showing you how the right pension contributions will make for the best pension plan. You can enter your desired annual income for retirement and the calculator will ask for your current income figures and tell you what pension contributions you should be making today.
For example, if you wish to retire in 25 years’ time with an annual income of €45,000, the current national average salary, you may need to make pension contributions of around €2,280 per month.
The National Pension Helpline Calculator will quickly tell you what your final pension pot should be to get your desired income and the pension contributions you need to make. The pension calculator factors in inflation and costs, and the results may surprise you.
Pension planning is all about thinking about the future and what pension contributions you need to make today to retire comfortably.
Retirement planning
Retirement planning is where you need the best advice available so you know your future is secure. The best advice will show how to choose the best pension plan and the contributions to make to make that pension plan work.
No doubt there are many attributes to pension planning you will not have considered. Questions like what are the options to retire early or indeed when can you retire and what tax-free lump sums can you access, are common with pension planning.
Good retirement planning is crucial. You do not want to get to retirement or close to retirement only to find out you have been on the wrong plan for the last 25 years. It may be too late to change when Tom or Mary in the office are retiring at 55, and you are still working.
By getting the best retirement planning advice today, you could be saving yourself money in the long term and get that retirement package you always wanted.
How to retire comfortably in Ireland
How to retire comfortably is the goal of good pension planning. You want to be able to retire at a time of your choosing and with an income to pay for all those plans you have for retirement.
To retire comfortably in Ireland, you need to have a good pension pot in place. Ireland can be expensive place to live and you will still have bills to pay when you retire. Everyone wants to retire comfortably and at an age of their choosing but how do you get there is the question.
Starting a pension at the right age is key to being able to retire comfortably in Ireland. It is never too soon to start a pension once you start working, but you start seeing major tax benefits once you reach 40. At 40, you can pay up to 25% of your salary tax-free into a pension plan, up to a maximum limit of €115,000 per annum.
If you want to receive the current national average wage as an annual pension when you retire, you are looking at around €45,000 per annum. To achieve this target pension income, you will need to contribute:
The pension contribution amounts listed are based on basic information given to the pensions calculator and are meant for guidance only. There are many variables involved in pension planning, and you should always talk to an expert when planning your pension.
The older you leave it to start a pension plan, the more expensive it becomes to afford that comfortable pension. On the other side, you also qualify for more tax relief on pension contributions, and most people’s salaries rise considerably with age and experience.
Pension contributions as a percentage of salary qualifying for tax relief:
| Age | Percentage of earnings |
|---|---|
| Under 30 | 15% |
| 30-39 | 20% |
| 40-49 | 25% |
| 50-54 | 30% |
| 55-59 | 35% |
| 60-plus | 40% |
You want to have the right pension plan in place today and not leave your retirement plans to chance.
If you want to travel more, enjoy a comfortable lifestyle, and do all those things you could not when working, then get pension planning today.
Do you also get a state pension?
Yes, you will also get a state pension, but the amount paid is low, and most people will struggle on a state pension alone. You may only access the contributory state pension when you are aged 66 and if you have the full amount of PRSI contributions paid during your working life.
The current Irish state pension personal rate is €277.30 per week when all PRSI contributions are paid before you retire. An Irish state pension will increase annually but usually by no more than the current rate of inflation.
The €277.30 per week equates to €14,419 per annum, which is less than a third of the average Irish salary today.
You will need a private pension plan to comfortably retire in Ireland. The contributory state pension will give you an income that is way below what you may need to live the retirement you have in mind.
The government encourages Irish workers to plan for the future with tax incentives on pension contributions, which increase as they age and maybe earn more.
You will get a state pension when you retire in Ireland, but you may need a private pension plan to give you the retirement you deserve.
Start a pension today
Start a pension today by filling out our free online assessment tool to speak with a Qualified Financial Advisor.
It is never too late to start a pension, and our Qualified Financial Advisors will advise you on the best options available today. Anyone from the self-employed to the over 50s and those looking to boost their retirement options should talk to one of our pension advisors.
Our personal pension calculator will give you an excellent idea of how much you need to contribute today to get the pension income you want in retirement. The pension calculator is the best way to get a clear picture of pension contributions when getting started on the best pension for you.
For the best pension advice and to start a pension today, fill out our online assessment tool and get talking with one of our Qualified Pension Advisors.
