Sample Pensions Calculator The calculator allows you to estimate the amount of money you would need to contribute to your pension in relation to your age and current yearly salary to end up with the level of pension you expect in retirement.

Your Details        Gender    (Please select Male or Female) Male Female    Current age      Current Annual Salary €     * Current Fund Value €     ** Target  Pension as % of Pre-Retirement Salary SELECT 50 55 60 66.66 %

* If you currently have a pension fund, this entry is the current value of this fund. ** Entitlement to a full contributory state social welfare pension is assumed and is included as part of the target pension. The current state social welfare pension is €11,976 per year (or €230.30 per week) as of January 2010. Tax Relief: Do you know that contributions paid to a pension scheme will benefit from income tax relief at your highest rate of tax? Tax Relief Example: If you contribute € 100 per week to your pension and you pay tax at the higher rate (i.e. 41%), the net cost to you works out at € 59 per week. Additional Relief: Contributions will also be relieved from PRSI and the Health levy, if you pay these charges. 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. 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. Click here for Pensions Checklist

NOTES

1. Assumptions used: Investment return will be 5% per year before age 65 and 4% per year after age 65
   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.
   A spouses' pension on death in retirement of 50% of the personal pension is included.
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 age 65.
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. Contributions or benefits may exceed limits prescribed by the Revenue. Your financial advisor will be able to help you to stay within your limits.
7. 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.