Pension Calculator Ireland.

The purpose of our pension pot calculator is to help Irish people understand how much they need to contribute to their pension to retire comfortably.

One of the most important aspects of retirement planning is your pension. Having a strong pension protects you in retirement as you will have less reliance on the Irish state pension.

To ensure financial security, it is important to think about your pension fund as early as possible, and to consider the lifestyle we want when we retire. Our desired lifestyle will dictate how much we need to contribute to the fund.

Our pension fund calculator algorithm helps you plan for your your retirement and how much you should be contributing to ensure you enjoy your desired lifestyle later in life.

The pension calculator factors in important considerations such as tax relief amount, inflation %, management charges and future fund performance and helps plan your monthly contributions so you can retire comfortably.

Our pension fund calculator will help you estimate the amount of income you need to contribute to your pension, based on your age and salary, to ensure you have your desired pension fund in retirement.

People are living for longer now which means ensuring your money lasts longer. 25 years income might need to fund 40 years plus of living expenses.

This calculator was developed with the help of our financial planning team alongside developers and actuaries; however, it is just an estimate trying to give individuals in Ireland an reliable guide on how their pension will look at retirement.

Note: You should always speak to a financial advisor before making any financial decision. All our pension reviews are 100% cost free, claim yours today

Pensions were traditionally designed as a retirement account where employers would make monthly contributions based on an employee’s salary and length of service with the company until they retire.

This allowed people to plan their financial future with the help of government tax relief.

It was a tax efficient way for employers to incentive employees and keep them more content at work.

Today a pension plan give employees several options in terms of how they invest and when they can access their pension pot(s).

For example, many people can access their pension at age 50.

With research and understanding all the pension rules, you will be able to make an informed choice about whether to take a lump sum or opt for pension income withdrawals instead.

There are pros and cons to both choices depending on your circumstances at retirement, so it is advisable to talk about them with your financial advisor.

Factors such as your retirement age, monthly contributions and future fund performance will have an enormous impact on your current pension and your pension value at retirement.

A pension plan is also referred to as a pension scheme or pension fund. It is an arrangement between employees, employers, the government, trade unions and other associations where contributions are made by one or more parties into pension funds which are used to provide benefits upon retirement, disability, death or when employment is terminated.

There can be a lot of confusion around pensions and people can get worried about where to start. However, it is ultimately very simple – a pension is a long-term savings account that also has tax breaks that incentivise saving for retirement.

Pension planning is time consuming but for most people, their pension is the largest investment they will ever make so it is hugely beneficial to do your research to ensure the best plan for you.

Pension Advisers will assess your income, your personal circumstances and what your ideal retirement age is, and will recommend the best plan possible for you from the diverse range of pension investment funds.

No matter how old you are, it is not too late to start a pension fund. A pension is like planting a tree. The best time to plant a tree was 20 years ago, but the next best time is today.

Not everyone can become members of company pension fund or invest in private pension arrangements. Consequently, financial institutions have created several ways to help people prepare for retirement later in life.

It is good to think about your pension as early as possible because there are pension options that can help you save more money for retirement earlier on in life. If you wait too long, the contributions may not be enough for you to stop working or to cover expenses from travelling or doing other activities that may give you purpose and fulfilment after years of being at work every day.

How to calculate your pension pot

Our calculator is a quick, easy way to assess what your pension contributions should be. We base it upon your income now, your age and your desired income for retirement and calculate exactly what you should be saving to ensure you achieve your desired lifestyle in retirement.

Ensuring good fund performance

Make sure you read about our best pension plans before you make a decision on which fund is best for you. Fund performance and your annual management charge can have an enormous impact on the speed of your pension growth. This is illustrated clearly in the retirement calculator above.

The State Pension (Contributory) is paid to people from the age of 66 who have enough (PRSI) contributions. This payment is often not enough to live off. That is why you are also recommend to have a personal and or company pension on top of your state pension.

To access your personal and company pension, the first thing you need to establish is which type of pension you have. There are several different types but, once you know which yours is, you’ll be able to ask the questions that suit your individual pension situation.

If you have an occupational pension with your company, you may be able to access it from the age of 50, depending on the rules of your company and the trustees of the pensions scheme.

Personal Retirement Savings Accounts (PRSAs) are also accessible from the age of 50, particularly if you have left employment or experienced illness or other conditions that affect your ability to work.

In general, personal pension arrangements allow for drawdown of your pension pot from the age of 60. This is subject to the rules of the scheme itself. There are some standard PRSA fees outlined in our PRSA information page.

If you are thinking to yourself, I would like to cash in my personal pension early. You can do so from the age of 50 onwards. You can access up to 25% or €200,000 of your pension early. This payment is made as a single Tax free lump sum.

In general, all income arising from pensions in Ireland is subject to taxation. Occupational pensions are taxed. However, many pensioners do not actually have to pay tax, because their income is too low.

An occupational pension is a pension provided by your employer. They are also known as company or employers’ pension plans. Occupational pension schemes provide a regular income after retirement. Some also give you a lump sum payment when you retire.

Occupational pension schemes may be:

In Ireland, there is currently no legal obligation for employers to provide occupational pension schemes for employees. In general, large employers in Ireland have occupational pension schemes, but many smaller employers do not.

Each pension scheme has its own set of rules. Pension schemes are generally regulated by the Pensions Authority. Members of schemes have certain rights, for example, to information about their pension.

Occupational pensions are subject to tax under the PAYE system (the ‘Pay-As-You-Earn’ System) so the process is the same as that applied when you were being paid your salary. If you have both an occupational pension and a social welfare pension, you may have to pay tax on both.

Occupational pensions are not subject to PRSI contributions but if you are aged under 66, you may have to pay PRSI on other income. Occupational pensions are subject to the Universal Social Charge.

The money you invest in a pension scheme can benefit from tax-free allowances. It is based on tiered thresholds according to your age and the process is designed as an incentive to save for retirement. The following outlines the tax-free allowances depending on your stage of life. It indicates the amount of tax-free earnings you can save per threshold. There is an upper limit of €115,000 that can be saved tax free.

Note: The contributions made are eligible for tax relief up to a maximum of €115,000

If you are in a defined contribution pension scheme with your company and you retire early, you are entitled to draw down a tax-free lump sum representing 25 percent of your total pension pot value.

You can access a PRSA pension pot from the age of 60 but if you decide to retire early you can arrange to draw down funds from the age of 50.

This is something that is managed by the rules of each scheme and the financial institution that controls the scheme.

The amount you can draw down tax-free differs between schemes, but it is often 25% of your total pension pot, up to a limit of €200,000.

Before deciding, it is useful to discuss your situation with an independent pension advisor.

Use our Irish pension calculator to determine how much you will have in your private pension fund before cashing in your pension early.

Irish pension contribution threshold 

There are limits when it comes to pension contributions and they are directly related to your age. The thresholds allow you to contribute a higher percentage as you get older.

It is worth noting that there is a maximum limit of contributions allowed while receiving tax relief. The current limit is €115,000 per year.

What do I need to retire in Ireland?

When calculating how much you need to retire in Ireland, you can expect a minimum of €253.30 (which is the current State pension) in retirement.

This equates to around €12,000 per annum. Generally, the State pension is not enough to meet the expenses of the standard of living we enjoy while working.

Investing in a private or company pension is intended to operate in tandem with the State pension and provide a combined pension pot that will allow us to enjoy our retirement years.

Our pension pot calculator will show you the recommended amount to save for your retirement.

Is the State pension age likely to change?

There have been proposed changes to the state pension in Ireland, expected to be introduced in 2024.

The new state pension will incentives workers to remain in the workforce until the of 70.

For each year a person remains in the workforce following retirement age at 66, you will receive a higher level of state pension.

This will help relieve stress on the Irish pension system with currently struggling to keep up with an ageing population.

Now that you used our pension fund calculator to find out how much you need for retirement, get in touch with the National Pension Helpline today.

Speak with one of Irelands leading financial advisors to get expert advice on how to get the most out of your pension.

It is never too early or too late to begin retirement planning.