Women in Agriculture 2008
‘Start planning your pension now’
Wednesday 15 October 2008
David Malone
Head of Information Services
The Pensions Board
The Pensions Board
Established by the Pensions Act, 1990
Operations:
• Supervision, regulation and enforcement
• Policy, legal and actuarial
• Information and awareness
National Pensions Action Campaign 2008
Women and Pensions
A Changing World
People are Living Longer
More Contract Work
More mobility in careers
Changing work patterns
More Part Time Working
Single Parent Households
Smaller Families
Separation/Divorce
Changing demographics
2006
2026
2056
No’s at Work
2,000,100
2,268,000
2,125,000
Aged over 65
464,000
844,000
1,532,000
4.3
2.7
1.4
No’s at work
per person over
65
Women & Pensions
50% of women in the workforce have
a personal pension
*Source: CSO Quarterly National Household Survey Update 2008
Pension = Income in Retirement
Where will your income come from when you retire?
State Social Welfare Pension 2008
€223.30 per wk or €11,611 per yr
…….will this be enough to meet your needs in retirement?
Reasons for putting it off
 36% said they couldn’t get around to organising a pension
 18% felt they couldn’t afford a pension, citing the following
reasons:
 nature of employment
 mortgage /loans/debts
 childcare/ caring payments and responsibilities
 majority had difficulty understanding the tax on pensions
 40% admitted to giving very little thought/no thought to their
income when they retire
Source of statistics: Red C Consumer Market Research 2008
National Pensions Action Campaign
2008
Why have a pension?
 To provide regular income in retirement, or early retirement due
to ill-health
 Tax Reliefs
 Part of your retirement benefit may be paid as tax-free cash sum
 Pension schemes do not pay income or capital gains tax on
investment returns
 Provision of lump sum benefit income for surviving dependants
 Income Tax and PRSI relief on employee contributions
You’re Never too Young or too Old
Tax Relief on Personal Contributions
The maximum contribution rate as a percentage of total pay/net relevant earnings
on which you can receive tax relief is:
Highest age at any time during the tax year
Under 30
30-39
40-49
50-54
55-59
60 and over
Limit
15%
20%
25%
30%
35%
40%
Notes: Contributions will also be relieved from the PRSI and the Health
Levy, if you pay these charges. For tax purposes these contributions are
limited to earnings up to a maximum of €254,000 in any year.
Types of Irish Private Pensions

Company Pension Schemes
(99,802 schemes with 800,398 members - €90 billion in assets
approx.)

Personal Retirement Savings Accounts (PRSAs)
(Over 140,000 PRSAs with asset value of €1.24 billion- June
2008)

Personal Pension Plans and Retirement Annuity Contracts
(RACs)
(In excess of 200,000 contracts – Irish Insurance Federation)
Voluntary regime for supplementary pension provision
Pensions on Separation or Divorce
Your pension entitlements arising from an
occupational or personal pension arrangement may
be affected by separation or divorce
Pension Adjustment Orders (PAOs) are used to
designate part of the pension benefits to a non
member spouse or a person representing a
dependent child.
Pensions in the workplace
• A good pension scheme has been long recognised as a very
valuable asset for both the company and its employees.
• There is a stronger commitment from employees to participate in
pension schemes where the employer makes a contribution.
• A company benefits from having:
– a reputation and respect as a good employer.
– a workforce that feels valued and important
– increased loyalty and commitment from staff
– an enhanced staff recruitment, reward and retention
package
Employers’ Obligations/ Opportunity
Access for all Employees
– By law an employer must provide ALL employees with some
form of access to a pension, whether they are in full-time,
part-time, temporary, contract or casual employment.
– All employers regardless of the size of their workforce are
obliged to provide access to a Standard PRSA if those
employees fall into the category of “excluded employees”
– Pensions Board also encourages all employees to ask the
employer about their pension rights
Next Steps…..
It’s good to talk ………….to your
Employer
Trade Union
Bank
Building Society
Insurance Company
Financial Advisor
We all have a responsible role to play…..
…tell a friend today about starting a pension!