Self-employed? Don’t neglect your pension planning! As a self-employed individual you have probably already made hundreds of decisions today. When you are self-employed, you have to. They are often automatic: part and parcel of your everyday working life.As a business owner you have to balance short term and long term needs, such as cash flow and long term growth. Retirement planning is no different. You need to fund your cost of living today while setting aside savings that will meet your income needs in retirement. If you agree with the above, and you find yourself in a situation where you haven’t any retirement planning in place, here is why you should start today? Could you afford to live off €12,000 per year? The current state pension in Ireland is €230.30 per week, taking into consideration current living costs, taxes and not to mention Water Charges! I think it’s safe to say the majority of us would struggle to get by. The way the current trend is going, it is enviable that the retirement age will get older while the weekly benefit will reduce. You don’t enjoy paying Tax? If you are like the majority of the people around the world and you don’t like paying taxes, one of the only few tax reliefs available today is pension contributions. Depending on you marginal tax rate (40% / 20%) you can receive relief on your contributions. So instead of helping pay for Mr Kenny’s fancy jet setting lifestyle start funding for your own. Tax Free lump sum When the day comes that you decide to hang up the boots, you will have a smile on your face knowing that the contributions that you have made have been growing away tax free and you will be able to take 25% of the value of your fund tax free. Full Control As a business owner you like to have control. The good news is that you have full control of your pension, how it’s invested and where it goes. In the event of death your pension doesn’t die with you, it can be passed onto your estate. Talk to us today if you have any questions in relation to any of the above, or maybe you think it’s time that you needed to steer that retirement in the right direction.