Pension - where do I start?!

justback83 · 11-01-2016 11:37am #1

My employer told me this morning that the company has decided to start a pension for me - very welcome news! It's a startup so they told me to have a look and see what pension scheme I want to join. I do not have a clue!!! They said they'd pay 10% of my salary and I could pay around 6%.

I've never had a pension before so don't really know where to start!

PaulM1977 · 13-01-2016 3:17pm

Speak with an independent financial adviser who can take you through everything. Main things too look out for are allocation rate(monthly contributions paid in to the pension) and annual management charge(get that as low as possible) and also ask about any fees, if any, that may be incurred for their time.

justback83 · 14-01-2016 5:41pm

Any suggestions on how much of my salary I should contribute? I'm 33 and earn €45K at the moment...

nailer54321 · 14-01-2016 5:48pm

Is this your first pension or were you in one with a previous employer? I would be looking to put the max into it at this stage, your employer is giving a generous amount too. Again as was said before get advise on this if it is your first pension, fees can be crippling.

justback83 · 14-01-2016 5:52pm

nailer54321 wrote: »

Is this your first pension or were you in one with a previous employer? I would be looking to put the max into it at this stage, your employer is giving a generous amount too. Again as was said before get advise on this if it is your first pension, fees can be crippling.

It is my first pension, yes. The maximum I can contribute is 20%. That seems crazy high...no?

nailer54321 · 14-01-2016 6:02pm

20% is correct amount for you age group, the amount you can
Up to 29 years 15%

30 to 39 years 20%

40 to 49 years 25%

50 to 54 years 30%

55 to 59 years35%

60 and over 40%

Again, you will need to get independent advice on this, they will advise you on all your options.

nailer54321 · 14-01-2016 6:04pm

forgot to say this is max amount you can contribute, you can select anything up to that amount its up to you

newacc2015 · 14-01-2016 11:01pm

justback83 wrote: »

It is my first pension, yes. The maximum I can contribute is 20%. That seems crazy high...no?

Not really. Americans generally get 10% from their employers and put 10% themselves into a pension. Is the company setting up a pension fund or do you have to find your own one?

justback83 · 15-01-2016 8:10am

newacc2015 wrote: »

Not really. Americans generally get 10% from their employers and put 10% themselves into a pension. Is the company setting up a pension fund or do you have to find your own one?

It's a startup, I'll be the only one on the pension for a while. They've told me to have a look around and see if there's one I prefer then they will set it up...

PaulM1977 · 15-01-2016 10:01am

justback83 wrote: »

Any suggestions on how much of my salary I should contribute? I'm 33 and earn €45K at the moment...

The amount to contribute depends on your own circumstances i.e. married, kids, mortgage, how much disposable income do you have left over that you can put in to your pension, based on this information.

newacc2015 · 16-01-2016 12:21pm

justback83 wrote: »

It's a startup, I'll be the only one on the pension for a while. They've told me to have a look around and see if there's one I prefer then they will set it up...

I would go to a fee based financial analyst to see what he recommends. If you go to a broker, they might suggest a company that they are friendly with rather than the best. Some pension companies here do far better than others.

If you read this article you will see pension performance varies greatly. Generally the same 2/3 companies in Ireland always give the best return. https://www.irishtimes.com/business/personal-finance/pensions-deliver-strong-returns-in-2015-despite-sour-end-to-year-1.2485884

Pension - where do I start?!

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