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I don't know what a pension is

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  • Moderators, Business & Finance Moderators Posts: 10,062 Mod ✭✭✭✭Jim2007


    As I said, you can come up with all the excuses you want, it will not change the reality you will experience. On top of which you either have not bothered to read or are deliberately ignoring all the research on topic, which makes it complete pointless trying to have a discussion with you.



  • Moderators, Business & Finance Moderators Posts: 10,062 Mod ✭✭✭✭Jim2007


    Well I am 60 and I 'retired' at 55 and I have absolutely no problem forgetting about the world of work! There are far too many interesting things to do when you have 6 Saturdays and a Sunday.



  • Registered Users Posts: 1,830 ✭✭✭lisasimpson


    During covid when we couldnt do anything i opted to add 1% of my pay to ny pension which the company match. Im still doing it because in a couples yrs ill probably go working parttime while the kids are little so will be adding little or nothing for it for a while

    Plus once kids are done for i want to be able to enjoy life. People are saying sure by the time your retire mortgage will be paid etc . That doesnt mean im going to sit on my arse praying for a peaceful death. I intend going on holidays hopefully fit enough to visit some budget list destinations also id be hoping some of my friends will be still around to meet for lunchs, time for hobbies,day trips etc so would need more than state pension



  • Registered Users Posts: 2,595 ✭✭✭Bogwoppit


    20 years to retiring at 60, fook working longer than that apart from some nixers for a bit of play money.

    I have a few different investments/pensions and should be reasonably comfortable.

    One of the funds in particular shows the advantage of pensions quite well. I started a job in my mid 20’s in the UK in 2009, paid into it for about 10 years. Total net cost to me was 15k over the 10 years. Company contributions on top along with the tax breaks, the value of that fund is north of £100k, absolute no brainer.



  • Moderators, Business & Finance Moderators Posts: 10,062 Mod ✭✭✭✭Jim2007


    I was involved one way or another in Swiss banking for over three decades and even when I went there they already had switched to the typical European three pillar system. So an employer pension was mandatory at the stage. So today it’s not that unusual for an average couple to have a pot of say 400k when they hit retirement. Compound interest is a very important factor, the earlier you start the more you will have.

    The problem with pensions is that it is not a mistake that can easily be fixed later.



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  • Registered Users Posts: 7,699 ✭✭✭StupidLikeAFox


    I am very grateful that I was auto enrolled in a pension when I entered the world of word at 23. The bare min was taken out, company matched as well, but I have well over 100k now in my 30s across a few pensions from different employers, never would have bothered if I wasn't auto enrolled.

    Should be able to draw down a portion at 50 to fund college for the kids as well, which is a nice bonus, and will hopefully have enough to knock a few years off the retirement age



  • Registered Users Posts: 27,114 ✭✭✭✭GreeBo


    Your question is really

    "Would you prefer 1300 a month now for 35 years and nothing after that or 650 a month now for 35 years and a lump sum of 750K after 35 years"


    Its clear from your replies and your questions that you actually don't at all understand how a pension works.



  • Registered Users Posts: 27,114 ✭✭✭✭GreeBo


    Public pensions rely on people paying PRSI.

    If you dont pay enough PRSI you dont get enough pension when you you retire.

    Your own PRSI payments wont cover your own pension, its a giant ponsi scheme that relies on more people paying in that taking out, for ever. I'm sure I don't have to explain how thats impossible.

    The reason old people dont spend their money on consumer products is because they dont have any bloody spare money to spend!

    The state pension "is intended as a basic income to prevent individuals falling into a poverty trap."

    Its not something that you are going to live off in anything resembling a comfortable lifestyle.



  • Registered Users Posts: 8,184 ✭✭✭riclad


    The problem is people go to school for years, no one teachs them about basic important things, like mortgages ,interest rates ,pensions ,if you dont learn about these things if will have a massive effect on your life ,quality of life where you live etc a pension is simply a tax effecient way of saving for when you retire ,eg you need an income to live on when you are over 65 and not working.

    the state pension will pay for basic expenses ,it will not give you a life of luxury thats why paying into a pension fund is so important and you need to be doing it for 20-30 years ,

    most people workin order to pay bills, pay a mortgage or pay rent , not every job is interesting or rewarding

    our economy depends on young people working and non nationals coming here to work, to keep the welfare system going and pay for pensions as people retire

    countrys like south korea or japan are facing an economic crisis due to the low birth rate and the no of older people retiring



  • Registered Users Posts: 2,232 ✭✭✭TooTired123


    My mother aged 88 saved €120000 by sitting in the cold at home with no heating on wearing charity shop clothes and grocery shopping at the reduced counter for 25 years. Now she’s in a nursing home and she can’t spend it. Funny thing is she acknowledges now that she knew this was going to happen, she just couldn’t stop herself.



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  • Registered Users Posts: 1,723 ✭✭✭Phil.x


    What is pensionable pay? And why is 5% of my salary only on pensionable pay and not the entire salary.



  • Registered Users Posts: 28,543 ✭✭✭✭AndrewJRenko


    Usually it means your basic pay, and doesn't include things like shift allowances or car allowance or similar. The theory is that you won't be doing shifts or won't need a company car when you retire, so they wouldn't be considered part of your pension. Sometimes it's a bit of a sharp move to reduce pension contributions.



  • Registered Users Posts: 1,723 ✭✭✭Phil.x


    But I don't have either shift or car allowance, so I don't know why my 5% is not calculated on the total wage.



  • Registered Users Posts: 28,543 ✭✭✭✭AndrewJRenko


    Any other allowances? Any variable pay elements?



  • Registered Users Posts: 10,507 ✭✭✭✭Jim_Hodge


    There's an easy way to answer this: ask your employer or wages/payroll office.



  • Registered Users Posts: 27,114 ✭✭✭✭GreeBo


    So spend it all now and fingers crossed you die the day after you retire?



  • Registered Users Posts: 1,723 ✭✭✭Phil.x


    Three days later, no reply to my email from payroll, maybe they don't know either.



  • Registered Users Posts: 1,723 ✭✭✭Phil.x


    So, payroll got back to me and explained it's called a State Pension offset, basically take into account my future state pension. I'll probably email my pension provider to ask more information



  • Registered Users Posts: 17,989 ✭✭✭✭rob316


    Yep and if you dont own your own home by retirement your fucked. People are in alot better condition retiring now than 30 years ago so you can imagine what we will be like in 30 years. We won't be ready to sit at home all day in front of the fire and a blanket over us. You'll want to travel and do activities, this costs money.

    My parents are 70 this year and they are so fresh, still able to work and do everything. My mother goes away every month, she has a great pension but that's beside the point.



  • Registered Users Posts: 28,543 ✭✭✭✭AndrewJRenko


    Annuity is a guaranteed payment for life. If you die early, the annuity company wins. If you live longer than expected, you win.



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  • Registered Users Posts: 28,543 ✭✭✭✭AndrewJRenko


    You’d need to check the terms and conditions of your own particular scheme to be sure.



  • Registered Users Posts: 31,823 ✭✭✭✭Mars Bar


    Is it possible to pay in to a pension from abroad?



  • Moderators, Business & Finance Moderators Posts: 10,062 Mod ✭✭✭✭Jim2007


    Since this is a serious question I’d suggest you ask it on the banking/insurance/Pension forum. There are many reasons why you would NOT want to do this and few why you would.



  • Registered Users Posts: 3,377 ✭✭✭...Ghost...


    Similar story here, except I'm closer to 40, started pension last year at 7% matched by employer. The OH will have a PS pension. We have a good 25-30 years of work ahead of us. Combined with some investing and having the mortgage paid before retirement, we should end up ok. I'm going with the assumption that there won't be a stat pension....at least not the one we know today.

    Stay Free



  • Moderators, Business & Finance Moderators Posts: 10,062 Mod ✭✭✭✭Jim2007


    The pricing model includes the assumption that a certain number of people will die early, if that does not happen then the company will make less than normal profits and more if the total number is greater than projected. I can't recall a single instance of any pension fund reporting exceptional profits due to the early death of pensioners. I don't expect the annuity model will fair well going forward as life expectancy increases.



  • Registered Users Posts: 23,732 ✭✭✭✭zell12


    She was raised to be frugal, saved if something happened. This is to be admired.



  • Registered Users Posts: 655 ✭✭✭BoxcarWilliam99


    My employer does not offer matched pension. Nor do they help set up the prsa which I understand they are legally obliged to?

    A few co workers have asked only to be pawned off or not have any reply at all



  • Registered Users Posts: 11,900 ✭✭✭✭anewme


    I’m at the age now where I’m looking ahead to see what the earliest is I can get out at.

    Weird but when you see the end is in sight albeit away in the distance, sometimes it seems further away. Suppose it’s because it’s on my radar now.

    Couple of recommendations:

    Start as early as you can, even with a meagre amount. If your employer offers a scheme where they match, take it. I started at 35 and I should have started earlier. Even 5 years.

    Check your PRSI record for your contributions. I recently did and was shocked to discover a full year of missing contributions- going back to the 90’s. It will make a difference if you are counting contributions to get a full record. They asked me if I had any documentation from back then. I had no payslips or p60’s but I had offer letters from jobs that covered that time. So keep every one of your P60’s and check them yearly that you are getting the correct number of contributions.

    Life passes quickly, one minute you are studying Peig for the leaving cert, the next you are checking what fair deal is.

    Enjoy the in-between because you only travel this road once.



  • Registered Users Posts: 1,933 ✭✭✭tesla_newbie


    I had an uncle who had a good farm but was terrified of spending a red cent, he was well off but lived the life of a slave ,a lot of people from previous generations are paralysed with fear about spending, nothing that government can fix , it’s pure neurotic



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  • Registered Users Posts: 27,114 ✭✭✭✭GreeBo


    its because they know what hard times are, don't want to endure them again and don't expect someone else to bail them out.



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