New Year, New Goals

January is the perfect time to take control of your financial future by starting or reviewing your pension. Whether you’re just beginning to save for retirement or ensuring your current plan aligns with your goals, making this a priority can set the tone for a secure and comfortable future. Here's how in our humble opinion you can make the most of your pension in 2025.

Avail of a free financial review with us here: https://synergycu.ie/services/financial-planning

Review Your Contributions Regularly

One of the simplest yet most important steps is to ensure you’re contributing enough to your pension. Are you saving as much as you can afford? Even small increases in contributions can lead to a significantly larger pension pot by the time you retire.

Keep in mind, there are annual limits on how much you can contribute to a pension while still benefiting from tax relief. For example:

• Under 30 years old: 15% of your earnings.
• 50–54 years old: 30% of your earnings.

Review your contribution limits and adjust accordingly.

Check Your Pension Charges

High fees can erode your pension savings over time. Ensure you’re aware of all the charges associated with your pension fund, including management fees and transaction costs. Compare these with other providers to see if you could save money by switching. Even a slight reduction in charges can significantly impact your long-term savings.

Make the Most of Tax Relief

One of the biggest advantages of saving into a pension in Ireland is the generous tax relief:

• Pension contributions are deducted from your taxable income, meaning you pay less tax overall.
• If you’re a higher-rate taxpayer (40%), contributing €100 to your pension effectively costs you only €60.

Don’t forget about carry-back contributions. If you contribute before October 31, 2025, you can backdate the contribution to the 2024 tax year, maximising your tax relief for the prior year.

Align Your Investments with Your Goals

Are your pension investments aligned with your risk tolerance and retirement goals?

• If you’re younger, you might benefit from a higher-risk, higher-reward strategy.
• As you approach retirement, it’s wise to shift towards more conservative investments to protect your savings.

Your pension provider or financial advisor can help you review your portfolio and ensure it matches your retirement timeline. Avail of a free financial review with us here: https://synergycu.ie/services/financial-planning

Stay Informed About Pension Legislation Changes

Changes are on the horizon with auto-enrolment in Ireland, expected to launch in 2025. This system will when launched automatically enroll workers into pension schemes, ensuring more people are saving for retirement.

Even if you’re already contributing, it’s worth understanding how auto-enrolment might complement your existing plan.

Seek Professional Advice

Pensions can be complex, and a professional financial advisor can help you navigate:

• Tax relief opportunities.
• Choosing the right fund.
• Planning your contributions based on your life stage.

Through our partnership with Irish Life, you can access guidance to make the best choices for your retirement savings, Avail of a free financial review with us here: https://synergycu.ie/services/financial-planning

Tax Breaks That Could Boost Your Pension Pot

• Enhanced Rent Tax Credit:
  With the Rent Tax Credit increasing to €1,000 for single people and €2,000 for jointly assessed couples in 2025 (backdated to 2024), renters can free up disposable income to direct toward their pension.
• Mortgage Interest Tax Credit Extension:
  Homeowners can claim up to €1,250 in tax relief on mortgage interest in 2025. This could create savings that are redirected into pension contributions.
• Carry-Back Contributions:
  As mentioned earlier, this strategy allows you to maximize your 2024 tax relief, giving you a boost to start 2025 on strong financial footing.

Why January is the Perfect Time

The new year is an excellent opportunity to take stock of your finances. By reviewing your pension now, you’ll:

• Set yourself up for a year of disciplined saving.
• Take advantage of new tax relief measures.
• Stay on track for a secure retirement.

At Synergy Credit Union, we’re here to help you achieve your financial goals. Whether you’re starting a pension, reviewing your current plan, or seeking advice on tax-efficient savings, we’ve got you covered.

Let 2025 be the year you take control of your retirement planning.

Avail of a free financial review with us here: https://synergycu.ie/services/financial-planning

Please contact us if you require any further information on financial planning advice

Email: info@synergycu.ie

Phone: 0818 272927

Disclaimer

The content provided in this blog is for informational purposes only and does not constitute financial advice, including but not limited to investment, tax, or retirement planning advice. While we strive to offer accurate and up-to-date information, Synergy Credit Union and the author are not financial advisors, and the insights shared here should not be construed as professional advice. The information provided is general in nature and may not be suitable for your specific financial circumstances. We strongly recommend consulting with a qualified financial advisor or pension specialist before making any financial decisions