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A State Pension enables you with a regular income after you retire, once you have reached the qualifying age. Currently, the age by which you can begin claiming State Pension is 66 years old. This will increase to 67 in 2021 and 68 years of age in 2028.
There are two types of state pensions, contributory and non-contributory. Websites such as www.welfare.ie and www.citizensinformation.ie provide full information on entitlement to state pensions. Usually, people are entitled to the State Pension (Contributory) if they have ever worked and have enough Irish social insurance contributions. The State Pension (Non- Contributory) is for people who do not qualify for the former type and who pass a means test and meet criteria based on where you live.
Some employers organise occupational pensions. The way an occupational pensions works is that a percentage of your monthly pay is placed into a plan, along with a minimal contribution from your employer as well as a tax relief from the government. All of these contributions made together should add up to a healthy savings in order to help you to grow and sustain any pensions for the future when you retire. If you are self employed or if your employer does not organise an occupational plan, you will want to consider organising a personal pension.
To access funds from an occupational or personal pensions, you may choose to purchase an annuity. This will convert your savings into a yearly pension, giving you a guaranteed annual income. This lasts for the rest of your life, or for a specific period of time. Another option available with most pensions is to cash in your entire plan rather than purchase an annuity.
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