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Connacht Tribune

Pension queries answered

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Daniel Hardiman

Daniel Hardiman of Hardiman Life & Pensions specialises in pensions and retirement planning. Here he provides answers to the most common questions asked about pensions and tax relief schemes

My accountant has advised me to pay into a pension to reduce my income tax bill. Is this worthwhile?

Your accountant has given you good advice and has outlined one of the main benefits of investing into a pension – tax relief. If you are on the higher rate of tax, your pension contribution qualifies for 40% tax relief. For example, If you are on the higher income tax rate, every €1,000 contribution to your pension will reduce your tax bill by €400. So the real cost of €1,000 in your pension is only €600.

There are other tax benefits of investing in a pension such as tax-free investment growth up until retirement age and a tax-free lump sum at retirement date equal to at least 25% of the value of your pension. The tax benefits of pensions actually work out better than the old SSIA scheme in the majority of cases.

When is the Best Time to Start a Pension?

Although it is generally never too late to start a pension, the earlier the better. The table below illustrates the impact that starting your pension early can have:

 

Age you Start Your Pension         Projected Future Value of pension at age 65

25           €273,800

35           €162,000

45           €96,000

These figures are based on a €250 monthly contribution and a projected investment return of 5% per annum.

I heard of someone’s pension dropping significantly before retirement age. Can this happen to me?

The best returns in pensions tend to come from investing in higher risk assets such as equities and property. However, there can be periods where these types of investments can drop in value. If you are at least 10 years away from retirement, you have the time to allow these assets to recover in value in the event of a drop. However, as you get closer to retirement age, you should gradually start to transfer your pension to lower risk assets that focus on preserving the value of your pension and this will protect you from your pension dropping in value before retirement.

Unfortunately, there were many individuals who were retiring around the time of the market crash in 2008 and for those without the services of an astute financial advisor who reviewed their strategy on a regular basis saw their pensions drop in value. It’s important that your pension is well diversified across a wide range of assets classes and this will reduce the risk level of your pension as you approach retirement.

For more, read this week’s Connacht Tribune.

Connacht Tribune

New chapter beckons for dilapidated old houses in Ballinasloe

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Cllr Dermot Connolly, SF leader Mary Lou Mc Donald, Galway/Roscommon TD Claire Kerrane, and Caoimhin Caulfield, Ballinasloe, at the Dunlo Hill regeneration project in Ballinasloe.

Plans to redevelop a row of empty terraced houses and an old famous bar will breathe new life into Ballinasloe.

Cathaoirleach of Ballinasloe Municipal District, Councillor Dermot Connolly (SF), said the Galway County Council has shown vision by buying seven terraced houses along Dunlo Hill, as well as the closed Dooley’s Bar on the corner of Dunlo Hill and Dunlo Street.

Local authority plans for the site will rejuvenate that street, and give an overall lift to the entire East County Galway town.

Liam Hanrahan, Director of Services for Housing, Economic, Rural and Community Development, confirmed to the Connacht Tribune that the local authority purchased seven two-storey dwellings, a three-storey over basement premises – formerly Dooley’s Pub – and another adjacent three storey building for a total of €390,000.

“The tender for the design team was run in conjunction with another infill development in Ballinasloe and that team is currently being appointed to bring forward the Part 8 planning for 12-15 units – a mix of one and two-bedroom units. We are examining what can be done with the pub unit, a protected premises, as a community hub or other town centre use,” he said.

For more, read this week’s Connacht Tribune.

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Connacht Tribune

Barn Owls are bouncing back in Galway

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The Barn Owl....returning in droves to Galway.

The Barn Owl is bouncing back all over the county – that’s the key finding of a recent survey which recorded an upsurge in the fortunes of this iconic farmland bird, now returning to parts of the county where they have been absent for decades.

The survey was carried out by BirdWatch Ireland in partnership with the Heritage Office of Galway County Council, and it’s great news for a bird that had become an increasingly rare sight around the county in recent decades.

Surveys show that Barn Owls were widespread in the east of the county in the late 1960s, but 40 years later their numbers had diminished, and their range had contracted significantly in east Galway and they were incredibly rare west of Lough Corrib.

However, the survey – carried out by BirdWatch Ireland in partnership with Galway County Council with the support of the National Biodiversity Action Plan Fund – provides cause for optimism and the first evidence that the fortunes of Barn Owls may be changing in east Galway.

The Barn Owl survey enlisted the help of farmers and the general public who reported information on Barn Owls across the county, and the survey also involved systematically checking a wide range of ruined structures, which are the typical nesting sites of Barn Owl.

For more, read this week’s Connacht Tribune.

Connacht Tribune Digital Edition App

Download the Connacht Tribune Digital Edition App to access to Galway’s best-selling newspaper.

Click HERE to download it for iPhone and iPad from Apple’s App Store, or HERE to get the Android Version from Google Play.

Or purchase the Digital Edition for PC, Mac or Laptop from Pagesuite  HERE.

Get the Connacht Tribune Live app
The Connacht Tribune Live app is the home of everything that is happening in Galway City and county. It’s completely FREE and features all the latest news, sport and information on what’s on in your area. Click HERE to download it for iPhone and iPad from Apple’s App Store, or HERE to get the Android Version from Google Play.

 

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Connacht Tribune

Spatial jobs strategy is still stuck in first gear

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Accusation...Cllr Shelly Herterich Quinn.

Commuters in Athenry and Oranmore are having to spend hours travelling to congested urban areas for work while policymakers renege on commitments to deliver industry locally.

That’s according to a local councillor who said the failure of the IDA to attract inward investment to Oranmore-Athenry Strategic Economic Corridor amounted to an ‘abandonment’ of local residents.

Cllr Shelly Herterich Quinn said despite having a commitment in local and national plans to attract industry into what amounts to around 500 acres in Athenry and Oranmore, nothing had come of it.

“We are now entering into the second County Development Plan where we have this ‘Strategic Economic Corridor’, and it was in the National Planning Framework.

“They appear to have abandoned the area and while we’ve seen IDA and Enterprise Ireland get investment for places like Tuam and Parkmore, they appear to be only investing in existing businesses, while doing nothing to attract new industry and indigenous firms to this area,” blasted the Fianna Fáil councillor.

At a meeting of the Athenry Oranmore Municipal District, Cllr Herterich Quinn secured the backing of local area councillors to write to the Tánaiste and Minister for Enterprise, Leo Varadkar, seeking assurances that steps were being taken to bring jobs to the area.

For more, read this week’s Connacht Tribune.

Connacht Tribune Digital Edition App

Download the Connacht Tribune Digital Edition App to access to Galway’s best-selling newspaper.

Click HERE to download it for iPhone and iPad from Apple’s App Store, or HERE to get the Android Version from Google Play.

Or purchase the Digital Edition for PC, Mac or Laptop from Pagesuite  HERE.

Get the Connacht Tribune Live app
The Connacht Tribune Live app is the home of everything that is happening in Galway City and county. It’s completely FREE and features all the latest news, sport and information on what’s on in your area. Click HERE to download it for iPhone and iPad from Apple’s App Store, or HERE to get the Android Version from Google Play.

 

 

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