Pensions Board urges women to plan for a stress free future

Friday 16 November 2007: The Pensions Board will attend the ‘RTE Off The Rails’ fashion and beauty show at the RDS this weekend (16–18 November), where it will highlight the importance for women to start a pension. Pensions coverage overall for the female workforce stands at 51%, compared to 58% for men.

Speaking today, Mr David Malone, Head of Information Services, The Pensions Board, said: “65% of women, cite that financial independence is a vital issue in their lives. We are all living longer and therefore women, just like men, need to be especially conscious of planning for a good standard of living during retirement.”

“Bearing in mind also that women tend to have a more fragmented career path than men, it is vital that women give greater consideration to their long-term finances. So I would encourage all women attending the Off the Rails event this weekend to visit our information stand and pick up a copy of the ‘Women and pensions’ booklet that will help to plan a stress-free future.”

Board representatives will be distributing the 2007 version of the ‘Women and Pensions’ booklet free of charge to attendees at the Off the Rails event. The booklet outlines the options for women when it comes to financial security for themselves and their dependants in retirement. It addresses issued of particular interest to women such as maternity leave, career breaks, separation, divorce and re-entering the workforce.

The Pensions Board is also encouraging women to visit the on-line pensions calculator and work out their future pension needs on www.pensionsboard.ie and to talk to their employer about a pension or go directly to their bank, insurance company or financial advisor and find out about starting a pension today.

ENDS

For further information:

David Malone
Head of Information Services
The Pensions Board
Tel: (01) 613 1900

Jackie Gallagher
Q4 Public Relations
Tel: (01) 475 1444 / (087) 237 1838

Notes:

About The Pensions Board
The Pensions Board is the statutory body set up to regulate occupational pension schemes and PRSAs and to advise the Minister for Social and Family Affairs, and through him, the Government, on overall pension policy development.

Pension Information
The Pensions Board has a range of information booklets on pensions matters including a comprehensive booklet on 'Women and Pensions'. All of the booklets are available online on at www.pensionsboard.ie and from LoCall 1890 65 6565.

 
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About the Pension’s Calculator

  • This pension’s calculator is designed to give a broad indication of the level of contributions required to give your desired pension at your retirement age. This calculator only provides 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.

Pension Calculator 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. 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. 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.
  4. 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%
  5. 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.
  6. 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.
  7. 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 annuity rate used in your personal illustration above will be shown when you run the calculator.
  8. This calculator takes account of the fact that the State Pension (Transition) will no longer be paid from 1 January 2014. This means that there will then be a standard State Pension age of 66 years for everyone. If you have qualified for the State Pension Transition before 1 January 2014 you remain entitled to it for the duration of your claim (1 year). State pension age will increase to 67 in 2021 and to 68 in 2028