Written answers
Tuesday, 15 November 2005
Department of Social and Family Affairs
Pension Provisions
9:00 pm
Paul Connaughton Snr (Galway East, Fine Gael)
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Question 377: To ask the Minister for Social and Family Affairs if a person aged 55 years of age should be encouraged to contribute to the PRSA pension fund; and if he will make a statement on the matter. [34303/05]
Séamus Brennan (Dublin South, Fianna Fail)
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It is Government policy to encourage people, through significant tax relief, to participate in private or occupational pension schemes because of the very positive impact the accrued savings can make to a person's overall income in retirement. Obviously, the earlier someone starts contributing to a pension scheme the better the chance that they will have accumulated a significant retirement fund by the time they reach retirement age. A person starting contributions later in life will need to make significantly higher contributions and this is recognized in the tax system with up to 30% of earnings contributed to a pension fund by a person over 50 years of age allowable for tax purposes. The Pensions Board website, www.pensionsboard.ie, features a very good pensions calculator which allows a person to estimate the amount of money they need to contribute to a pension in relation to their age, current salary and the level of pension they want in retirement.
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