Although Pensions are critically important for most people, as a Financial Advisor it is amazing at the different excuses and reasons that I come across as to why people don’t set aside money for retirement. I find it so amazing that I have decided to share some of the most common excuses that I come across on a daily basis, it will be interesting if you find yourself in one of the below categories?

1. I’m too old to start a Pension

Are you  too old to save on tax? i don’t think there is anyone out there that is too old to save up to 41%* of his/her earnings on tax?

2. I’ve heard the fund performance can be volatile

A Pension is a long-term investment. like any investment you must weigh up risk versus growth and determine a level that balances your goals and risk profile. In addition, contributions to your Pension plan are subject to tax relief of up to 41% and any growth earned by your pension investment is currently tax free.**

3. My Business is my Pension

What if you decide you don’t want to sell your business, or you may wish to pass it on to your family? It’s a good thing to spread your investments and make the most of the tax breaks available to you, after all there aren’t to many other opportunities out there?

4. My property is my pension

Property is a sensible part of any investment portfolio but can it decrease your tax bill? A Pension plan can and it ensures that your income on retirement isn’t solely dependent on the value of one single asset class. I think the last few years should be an example of the dangers of this investment strategy. One should consider the reality that many property investors faced being forced to sell in the midst of a falling property market.

5. I’m too young to think about retirement Planning

We are living longer and the state pension is starting later. We believe this trend will only continue so the younger you start a Pension the cheaper it is to provide for your future.

* Assuming you are a higher rate tax payer. There is a limit of €115k on the amount of earnings which can be taken into account for the purpose of tax relief on pension contributions in 2013.

** A temporary 0.6% Government levy applies to the market value of assets under management in Pension funds until 2014. This levy will increase up to 0.75% until 2015 subject to Revenue confirmation.