Best pension for 40+year old

dto001

Hi All,

I'm looking at setting up a pension but I'm a bit late to the table. I'm 44 and looking at starting a pension but when I look into the pension calculators for the average salary 40K its giving me a sum I can't afford to pay every month. Any advice would be good.

Cheers

Buddy Bubs

You can afford something and that's what you pay in. If you can afford it, creating a pension pot that will give you a few thousand above the state pension in retirement is worth it.

Big difference in going from 12k a year state pension to an income of maybe 20k a year in retirement.

You need to know what you want retirement to be for you then work from there.

Hopefully you'll be mortgage and rent free and no kids dependent etc then a modest enough income will be sufficient

JVince

If you are paying high rate tax it can be very affordable as it is a deduction before tax.

So example of €500 a month is only costing you €300. You can start lower and gradually increase and you can also pause payments

At an average growth of 5% and inflation+ fees of 3.5%, that €500 would give you about €10,000 a year from age of 67. This is in addition to the state pension.

Jim2007

https://www.boards.ie/discussion/2058317202/best-pension-for-40-year-old

There is no arbitrary best pension product. There are many different financial products out there all designed to meet needs of different people seeking to secure their financial future. To identify which products would most likely suit you, it is best to consider your overall financial situation and a projection of your likely financial needs in retirement. Once you have an over all plan it is easier to decide on which products might best meet your needs.

shane b

https://www.boards.ie/discussion/2058317202/best-pension-for-40-year-old

I started a pension for the first time in 2021 and would have been 44 at that time, so i know where your coming from. The pension im part of is a company scheme with New Ireland Assurance where i put in 5 percent and the company put in 5 percent. Even though its 5 percent of my gross wages, my take home is only down by 2.5 %. I could put in more but the company will only match the initial 5 percent.

The rule thumb rule about putting in half your age (value) as a percentage into pension is a bit daunting. Between mortgage, childcare, household & motoring costs, I couldnt afford a 10% plus drop in wages.

Henry Ford III

Get proper advice. Be prepared to pay for it also.