OVERVIEW

Pension arrangements have a number of advantages:

  • When people come to retire, they will experience a reduction in income - a pension makes up for some of this loss of income in retirement
  • Pension schemes can provide protection in the form of lump sums and pensions to dependants in the event of a member's death
  • In order to encourage pension schemes, the State provides tax relief on contributions made to pension schemes and the growth in their investments