Do you have a pension?

One More Toy

Was sitting around at work talking about it, I was the only one of my colleagues to have one set up, and contributing the maximum, why is there such disregard in the Irish population towards private pensions? The state one wont provide the greatest of living standards yet people put it off, even into their forties:eek:

Sheep Lover

I've a more solid financial plan, die young.

charlietheminxx

Yeah, they don't do a pension scheme in my current workplace (they did in my last job) so I set up my personal private pension when I was 25. I only pay about 120 euro a month into it, but sure it's better than nothing. I'll increase the payments when I hit 30 and again every 5 years after that. That's the plan anyway.

justchecked

Sell the gaff and rent for the last decade or so.

One More Toy

charlietheminxx wrote: »

Yeah, they don't do a pension scheme in my current workplace (they did in my last job) so I set up my personal private pension when I was 25. I only pay about 120 euro a month into it, but sure it's better than nothing. I'll increase the payments when I hit 30 and again every 5 years after that. That's the plan anyway.

cut back on booze fags and lube, and get that contribution up to 15%

The Backwards Man

Yep, paying into it since I was 21, if I kick the bucket before I can collect I'm gonna haunt the fcuk out of the buck that sold me it.

Badly Drunk Boy

Why can't I have a pension but also throw my money away with the Lotto?

(That's what I do.)

Gone West

I manage my own investments.
These pension funds will probably be fu*cked by the time we are 75 and at retirement age.

newacc2015

charlietheminxx wrote: »

Yeah, they don't do a pension scheme in my current workplace (they did in my last job) so I set up my personal private pension when I was 25. I only pay about 120 euro a month into it, but sure it's better than nothing. I'll increase the payments when I hit 30 and again every 5 years after that. That's the plan anyway.

You are significantly better off overpaying in to it now, than reducing your payments in a few years. Than paying more into it, when are close to retirement. The way interest works, you are better over paying now

Im young, so Ill have to have a private pension. No one in Government has admitted, than in a few generations, we are ****ed for pensions. The Government is paying current pensions with current PRSI payments. Its not taking into account, that there will be a fraction of tax payers to pensioners in a few decades

Plus its ****ed up in Ireland, that your pensions arent linked to your income. If quite unfair that some on 100k a year, gets the same pension as someone who earned 10k per year

Cee-Jay-Cee

I'm in the public sector and so will have a state pension (boo hiss...yeah yeah what ever) I also have two 'with profits' savings funds which are doing extremely well and have been since I started them in 2000, they've averaged between 27 and 36% in bonuses since the start with everything earned to date including my premiums guaranteed on maturity. They'll give me a nice nest egg on retirement.

biko

Sheep Lover wrote: »

I've a more solid financial plan, die young.

Live fast and die young-ish. That's how all the cool kids go.

OldMrBrennan83

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foggy_lad

One will always have one's monthly allowance from the trust funds and also a meagre income from the thousand acres farm at the back of the house:D

ytpe2r5bxkn0c1

I paid between 8 and 12% of my salary in to one for 35 years and retired at 55. Large lump sum and a very decent monthly payment ever since. Get in early and contribute as much as you can. Just remember it's a long term investment.

TPD

I've had one since 21, paying in 5% which the employer matches.

BoJack Horseman

anyone in their 20's or 30's who hasn't is boned.

the state pension is almost certainly going to be significantly lower if retiring around 2050 vs the rates enjoyed today
its 50% unfunded as it is & thats just going to get worse.

Menas

Yeah, I have a pension, had it for a good while now. Having a pension plan and owning my home was always important to me.

I would fear getting old, having to pay rent whilst depending on the state for cash. No way our generation will be looked after by the state at anything above a very basic level.

Son Of A Vidic

Fuzzy wrote: »

I manage my own investments.
These pension funds will probably be fu*cked by the time we are 75 and at retirement age.

I agree, too many people have lost a lot by blindly following pension plans. So I'm only too glad to look after it for myself.

sinead88

I work in the UK where it's become mandatory to pay into a pension if you're employed. It was set up for me by my employer with Standard Life. I only pay about 2%, but could choose to increase it if I wanted. I think it goes up a percentage for each year I'm paying it too. I'm actually glad it came in, because i never would have thought to set one up myself.

Menas

Corvus Maximus wrote: »

I agree, too many people have lost a lot by blindly following pension plans. So I'm only too glad to look after it for myself.

Just wondering, do you have to invest your money in only pension funds to get a pension tax break?
Or can you manager your own 'fund', invest it as you wish and also get the tax break?

OldMrBrennan83

This post has been deleted.

Yeah I have one I think I pay 8% and employer matches a few percent of it
Definitely a necessity

caff

The Backwards Man wrote: »

Yep, paying into it since I was 21, if I kick the bucket before I can collect I'm gonna haunt the fcuk out of the buck that sold me it.

If you die early it pays out a lump some to next of kin, think all schemes do that anyway.

caff

Patww79 wrote: »

Where do people find out about all this stuff? Do they teach it in college now?

All I remember is that when I started working they took some of my wages every fortnight. It could be all gone now for all I know.

You should get a yearly statement of how your scheme is doing.

cactusgal

Yes. I didn't start it until age 32, so I put in €240 a month. No contribution from employer. I'm one of the few at work who has one.

Sugar Free

Have had one since I started working. Currently manage to put low five figures a year into it which should be enough for a while.

Menas

caff wrote: »

If you die early it pays out a lump some to next of kin, think all schemes do that anyway.

Fck all good that is to Backwardsman when he is 6 feet under...which is why he would come back to haunt the salesman!

Taxburden carrier

BoJack Horseman wrote: »

anyone in their 20's or 30's who hasn't is boned.

the state pension is almost certainly going to be significantly lower if retiring around 2050 vs the rates enjoyed today
its 50% unfunded as it is & thats just going to get worse.

Not alone will the state pension be the under threat, public sector ones will be as well.

caff

Menas wrote: »

Just wondering, do you have to invest your money in only pension funds to get a pension tax break?
Or can you manager your own 'fund', invest it as you wish and also get the tax break?

It has to be an approved scheme by the pensions board and department revenue. Some schemes are flexible enough to allow you to choose the allocation of funds within it, most common of this type would be a PRSA.

caff

Menas wrote: »

Fck all good that is to Backwardsman when he is 6 feet under...which is why he would come back to haunt the salesman!

Just making it clear that the money wouldn't be wasted if the contributor dies before claiming it.

OldMrBrennan83

This post has been deleted.

conorh91

charlietheminxx wrote: »

YI set up my personal private pension when I was 25. I only pay about 120 euro a month into it, but sure it's better than nothing. I'll increase the payments when I hit 30 and again every 5 years after that. That's the plan anyway.

Obviously you know your own affairs better than anyone here, but would you not wait until you're earning more money before contributing to a pension?

I don't intend to start paying into a pension until I'm earning about €35k, because until that stage, I won't be able to afford an adequately substantial contribution. At present, since my salary is so modest, even any modest sacrifice would hurt my finances a lot.

If you're optimistic of your earning power increasing in the future, I think it's sometimes advisable to wait until that starts to happen before contributing to your pension.

BoJack Horseman

Taxburden carrier wrote: »

Not alone will the state pension be the under threat, public sector ones will be as well.

indeed.

neither the state or public service pension is able to fund itself.

Galwayguy35

Jeez I though I was great starting one last year at 39, but it seems the 21 year olds today are smarter today than I was at that age starting their pension early.

Still better late than never.

Amirani

Mine is decent enough at the moment.

I pay 2% of salary, employer pays 11% by default. I contribute an extra 1% on top of this, which the employer matches with 1%. One of the better non public-sector pensions going I reckon.

caff

Patww79 wrote: »

Never seen one, wrote it off years ago. Don't even know who it was with.
Even though it's hardly worthwhile as it was only for 18 months, is there anything I should do with the last pension? It was with Irish Life, so I can at least chase that one up.

You can contact the scheme trustees and use the contributions to top up your current scheme as a once off payment. Best to find out the scheme details and approach the trustee of your current scheme to find out how to do this or a financial advisor to check your options.

BoJack Horseman

Diego Simeone wrote: »

Mine is decent enough at the moment.

I pay 2% of salary, employer pays 11% by default. I contribute an extra 1% on top of this, which the employer matches with 1%. One of the better non public-sector pensions going I reckon.

thats a terrific deal!

hmmm

conorh91 wrote: »

If you're optimistic of your earning power increasing in the future, I think it's sometimes advisable to wait until that starts to happen before contributing to your pension.

Good habits start early. You'll always find some excuse not to contribute to a pension e.g. you'll have kids, get married, elderly parents. Better to start early and get used to a slightly lower standard of living, rather than spending everything and moaning about how you can't afford to retire in later years.

Sugar Free

BoJack Horseman wrote: »

thats a terrific deal!

I've something similiar. Tbh all the companies I've worked in have at least matched my contribution up to a defined %. Current deal exceeds my contribution.

I imagine it's standard enough in large companies?

Nucular Arms

I was all set to get one when I was working (and a car mind for that matter) but then 2008 happened and I haven't been in a financial position to do it since.

Hopefully next year though. I'll be 32 then.

Melisandre121

Would you believe I've never even considered a pension.

What's the main difference between state pension and private? How does private work? Excuse my ignorance...

not yet

I've a pension of half my salary per week and 1.5 my salary lump sum..

Now I don't contribute to this handsome pension, I think the indo call it a golden pension, sure I'll be livin it up in luxury on my pension...

Yep you guessed it I have the hens teeth of pensions: A public sector one so fcuk all you fools contributing week after week to your pension pot.

Jaysus I can't wait to retire and get all this free money....

caff

Melisandre121 wrote: »

Would you believe I've never even considered a pension.

What's the main difference between state pension and private? How does private work? Excuse my ignorance...

State pension is not set in stone as can be changed on the whims of the government of the day. Private pension is a savings/investment scheme to fund your retirement. There is risks to both but with a private scheme at least you nominally can control the risks.

Melisandre121

caff wrote: »

State pension is not set in stone as can be changed on the whims of the government of the day. Private pension is a savings/investment scheme to fund your retirement. There is risks to both but with a private scheme at least you nominally can control the risks.

Ahh.. And do you then dictate how much you get weekly when you retire with a private scheme? Or does it work out much the same amount?

Amirani

Melisandre121 wrote: »

Ahh.. And do you then dictate how much you get weekly when you retire with a private scheme? Or does it work out much the same amount?

You'd typically buy an annuity that would pay you a fixed amount per week based on big it is.

caff

Melisandre121 wrote: »

Ahh.. And do you then dictate how much you get weekly when you retire with a private scheme? Or does it work out much the same amount?

You dictate how much you put in, these contributions are then invested and grow ( though they could drop also but generally pension schemes are risk adverse ) on retirement you then have a few choices. Probably better to google these, lump sum and annuity, invest in an ARF , improved minimum retirement fund. Few other types also. A private pension is in addition to the state pension if you are eligible to receive it.

Melisandre121

Melisandre121 wrote: »

Would you believe I've never even considered a pension.

What's the main difference between state pension and private? How does private work? Excuse my ignorance...

state one is very small
get a private one so you can combine the two and be ok

Melisandre121

Well this has been an eyeopener..

ToddyDoody

Yes, but as it stands, I'd need to work until 67 and be well dead by 70.

ytpe2r5bxkn0c1

conorh91 wrote: »

Obviously you know your own affairs better than anyone here, but would you not wait until you're earning more money before contributing to a pension?

I don't intend to start paying into a pension until I'm earning about €35k, because until that stage, I won't be able to afford an adequately substantial contribution. At present, since my salary is so modest, even any modest sacrifice would hurt my finances a lot.

If you're optimistic of your earning power increasing in the future, I think it's sometimes advisable to wait until that starts to happen before contributing to your pension.

Totally the wrong tack. Pay in what you can as early as you can. Never underestimate the power of compound interest. Of course if you have zero disposable income that is a different matter but also consider that pension contributions are very tax efficient.

jimmycrackcorm

I've several pensions now from changing jobs which will become a pain to keep track of in the future.

Based on my family history though I'll probably die from cancer either just after our well before pension age.