Individual Retirement Pension (IRP): Who Qualifies and What You Get
Learn how the Individual Retirement Pension (IRP) provides tax deductions for your savings and what you need to know about withdrawal rules.
The Individual Retirement Pension (IRP) is a personal savings account designed to help you build funds for your later years while providing tax benefits today.
Who it's for
This scheme is available to all people who earn an income.
What you get
When you contribute money to this account, you can receive a tax deduction on those contributions. The benefit applies to amounts contributed up to a certain annual limit.
What it costs you
While there is no direct cost to open the account, you will face a penalty if you choose to withdraw your money before you reach the age of 55.
The catch to know
This is an investment-linked account, which means you carry the full risk of any market fluctuations. The value of your savings depends on how the underlying investments perform.
How to apply
- Decide on the amount you wish to contribute annually.
- Open an IRP account through a financial institution.
- Set up your contributions to ensure you maximize your tax benefits.