Pension

About the Calculator
This calculator only gives a sample indication of the funding contributions for your pension and no reliance should be placed on it.

This calculator does not take into account any contributions an employer might make to your pension.

Do you know that contributions paid to a pension scheme will benefit from income tax relief at your highest rate of income tax? This calculator takes into account current income tax relief benefits.

For a full and accurate assessment of your personal finances and any tax relief you may be entitled to on your pension contributions always consult with a professional financial adviser

The next step is to talk to your employer, trade union, bank, insurance company, building society or financial advisor about starting your pension today.

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Notes
1. Assumptions used: Investment return will be 5% per year before retirement and 4% per year after retirement.
Salary will increase at 3% per year.
Pension will increase at 2% per year in retirement.
The State Pension will increase in line with salary increases.
Spouse's annuity assumes a 3 year age gap between the Main Life and Spouse. Mortality post-retirement is assumed to be in line with 52% of the PNMA00 table for males and 60% of the PNFA00 table for females with allowance for future improvements in mortality. Under this mortality table the average life expectancy at age 65 for a male or female is approximately 25 or 27 years in 2046. This is in line with current guidelines recommended by actuarial guidance in Ireland.
Your personal illustration above makes an approximate allowance for the recently introduced Pensions Levy (i.e. 0.6% of your Fund Value) until 2014 or your intended retirement year if earlier.

2. Contribution amounts shown will increase each year as salary increases.

3. This pensions calculator is designed to give a broad indication of the level of contributions required to give the desired pension at your retirement age.

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4. The actual pension at retirement will depend on actual investment return and salary inflation up to retirement and on the cost of purchasing annuities at retirement.

5. Tax relief calculations take account of age related limits on tax relief in any given year as prescribed by the Revenue. Your financial advisor will be able to help you to stay within your limits. The maximum tax relief as a % of earnings are as follows:

• > Under 30: 15%
• > 30 to 39: 20%
• > 40 to 49: 25%
• > 50 to 54: 30%
• > 55 to 59: 35%
• > 60 and over: 40%

6. The maximum contribution that is allowable by the Revenue for tax relief purposes, given your age, is 20 percent of your net relevant earnings. Revenue have set a limit for determining maximum net relevant earnings for pension purposes at €115,000 for 2011. Contributions made in excess of these limits may not receive tax relief.

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7. Contributions or benefits may exceed limits prescribed by the Revenue. Your financial advisor will be able to help you to stay within your limits. Budget 2011, introduced a Standard Fund Threshold (SFT) of €2.3 million. Individuals with pension funds in excess of this value as at 7 December 2010 may apply for a Personal Fund Threshold(PFT). When the capital value of pension benefits drawn down by an individual exceed his or her SFT or PFT as appropriate, a tax charge of 41% is applied to the excess fund.

8. In these net contribution calculations, PAYE & single persons tax reliefs and single persons tax bands are assumed. It is also assumed that no other tax reliefs apply.

9. The annuity rate used to convert your pension fund at retirement age is a long term average annuity rate, which makes no allowance for the recent gender equalisation ruling. The actual annuity rate at retirement may differ from the annuity rate used in the illustration above. The annuity rate used in your personal illustration above is 24.1.

Adding the Pension Calculator to your Home screen

For iPhone Users

Click on the "+" and select "Add to Home Screen"

For iOS4.2 +higher
Click on share button and select "Add to Home Screen"

For Android Users

Bookmark Pension Calculator page by clicking on the "add bookmarks icon"
Open the browser "bookmarks" screen
Long-press the bookmark you want
Select "Add to Home screen"