* The tax treatment depends on individual circumstances and may change in the future.
Always worth considering
Whether you've been working for a long time or not, pension savings schemes are always worth considering. By depositing a monthly amount, you can build up a tidy supplementary pension.
Steady capital growth
A pension savings fund invests in shares and bonds, with the objective of achieving long-term capital growth.
If you're saving for your pension, you're entitled to 30% annual tax relief on the deposited amount. The maximum tax-deductible amount for pension savings schemes in 2016 is 940 euros.*
Who is eligible?
All taxpayers under the age of 65 can start putting their money into a pension savings scheme. It does not matter how many years you have been working.
Why choose a pension savings fund?
A pension savings fund is one way to save for your retirement. In practice, it is a collective investment fund that invests in shares and bonds. As it's an 'investment', the return of your pension savings fund is not fixed, but depends instead on how the shares and bonds perform and this may fluctuate significantly in the short term.
However, the tax relief you enjoy for every deposit into the pension savings fund will boost your return significantly. A pension savings fund generally offers a higher long-term return than a pension savings scheme with guaranteed rate of interest.
Remember that if you include your pension savings scheme in your tax return and you receive a tax break as a result, the capital you have built up will be subject to a final tax.
Defensive pension savings fund
If that sounds too high-risk for you, you can go for a pension savings fund that invests more in bonds than in shares. This makes any capital you have accumulated less sensitive to stock exchange fluctuations.
- Using a standing order for your savings will ensure you never forget to make a deposit.
- Index-link what you save for your pension to always get the maximum tax-deductible amount for your pension savings.
- It is not necessary to make a deposit every month or even every year. If you are unable to make a deposit due to a financial setback, no problem. You can simply start saving again when you are able to.