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FUNDING
FOR YOUR PENSION
The Business person must plan at some point
in time for provision of income at retirement for oneself,
and maybe his/her dependents. Also the substantial tax relief
on pension contributions should be taken up.
When it comes to deciding on taking out a
pension plan, you should compare all the pension companies
and their plans. Your main concern should be to obtain the
largest pension fund possible to draw on at retirement.
There are three factors to consider in
the pension plans available:-
1) Value for Money of the Pension Plan Contract/Product:-
This is comparing what is available from the different pension
companies. Here one can compare the output into the pension
fund from the pension contributions that are put in, with
all other variables the same/equalised - such as pension fund
growth performance being taken out of the equation. Here we
are comparing charges such as the pension management charge
on the fund etc.
2) Flexibility of the Pension Plan Contract/Product:-
This details what flexibility for changes are allowed in the
pension plan from the different types of pensions from the
different pension companies. You may need to alter your pension
when your occupation, lifestyle, financial circumstances,
or aspirations and goals change.
3) Pension Fund Growth Performance:-
This compares the actual fund growth achievements of the different
pension company's pension funds. Your pension premium contributions
are invested in funds, which grow free of tax.
This is a crucial part of the pension plan as it makes the
most out of every euro that you will put in your pension over
the years.
Pension Fund Performance:
Due to the current low annuity rates you will need to seek
the best performing pension funds.
Although past pension fund growth performance is not a forecast
guide to the future performance, it certainly helps in providing
a lot of well documented facts.
In buying a house, generally the most important three factors
for the buyer to consider that Estate Agents list are: location,
location, and location. In regard to a pension plan the three
most important factors could well be: fund performance, fund
performance, and fund performance!
Fund performance tables detailing fund growths
over the last 5 and 10 years are readily available.
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