Zurich Life – How does a pension work?

Updated : Nov 11, 2019 in Articles

Zurich Life – How does a pension work?

Here’s how a pension works. Each payday,
each year or as often as you like, you save some money into a retirement
fund. Your fund is put away and invested. Its aim is to grow over time so that
when you finally decide to retire, you’ll have enough saved to live out your life,
happily. That’s it. A pension is just a way of
saving for the long term, but it’s different for two reasons; tax
and time. Firstly when you save money in a pension
you may get tax relief on it, so the real cost you could be less than you might
think, a lot less. Secondly any returns you earn your
investment are reinvested over and over and over, for years. It all depends on how your investment
performs, but even a small amount saved in a pension when you’re young, could
become very large by the time you retire. And you need it because the state
pension may be far lower than the income you’re likely to need. Pensions are easy
to start. Talk to a trusted financial broker or advisor, or find out more at Zurichlife.ie


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