Pensions: savings on steroids, but with pitfalls

With tax relief on the money put in, tax-free fund growth and a tax-free lump sum on retirement, pensions are the best value for money financial product ever

There are a number of reasons we need a pension, mainly because the state keeps pushing out the age at which you qualify for the state pension. If you retire after 2027, you are looking at a retirement age of 68 before you even get the state pension.

The other main reason is drop in income. The average income in Ireland is now €45,075 – the contributory state pension is €12,391.60 per annum. ...