I don't know what a pension is

The current status of work to 65 (67-68 whatever) and then retire on the state pension is based on the premise that your home is owned and paid off by that age - so that, whilst your incoming cash will be less than the salary you had, your outgoings are less. No commute, no mortgage etc.

I've realised I'm not going to be able to live on just the state pension, so I've started contributing to an employer based pension at 5% matched contribution, getting 10% of my gross and costing me 3% of my net. It's a no brainer really. I started maybe 3 years ago (36 now) and wish I started earlier. Apparently if you move jobs you can merge pensions with one from the new employer too so you don't need the old style job for life to have a pension either.

My aim was always to retire while I can still enjoy some good years and cruise the world, have some vintage cars and potter about in my garden. Combining the state pension with a private pension would allow that life.

You don't have to merge the pension on moving jobs. you can just park it and let it continue to grow. Then, once you pass 50 ,you can carry on working but you can access some of it tax free, and invest the rest into an ARF subject to Revenue rules. This might be useful if for example you wanted to pay for kids in college etc.

If you merged pensions from several jobs into your current employer's scheme then you couldn't access any of that money until you retired.

Following on from CramCycle's comment on wishing he'd started earlier:

"Someone is sitting in the shade today, because someone planted a tree a long time ago." Warren Buffet

On joining private schemes - it's good to max out your contribution if there's an employer match and to do so from the first day in the job so you never get used to having the money - that way you'll never miss it.

You need 1million at least, in a pension fund.

For people in my social circle, that's the target, some people say 2million, with inflation.

Just saying Jim that the essence of the 'Fair Deal' scheme as experienced in our case, is that it seeks to make those who have assets like pensions and property to pay full whack, whilst those who don't are still looked after. That's how it seems to work.

It's a big generational change in my lifetime. Formerly elderly were more likely to live with adult relatives and the transfer of wealth was more direct from one generation to to the next. Now people go to nursing homes and a much higher proportion of the wealth they accumulate goes back into the economy and state coffers.

Sadly that is the reality if you want a reasonable pension on retirement. €1M is not possible for the vast majority of the population though.

Like Kenzie Dirty Napkin, even as a young kid I remember my father banging on about the importance of a pension. Unfortunately he died too young to ever see any of it, however his county council pension kept the show on the road for my mother and the eight of us, and I think my mother actually got more money from the Co. Co. over the rest of her life than he ever did while he worked there.

I suppose what I'm saying it it's important to balance saving for retirement with the importance of enjoying the present as well.

Very true and a reality check. The stats bear out the problems coming up the road for the country that we live in and the fact that we have an aging population where only 60% have private pensions. Look around you if you are out and about daytime and see the amount of people floating about of a pensionable age, filling time in. The other stat that is looming larger and lager is the amount of people approaching pensionable age who don`t own their own home. These people will have to be looked after by the state one way or another.

We cannot all work for the county council or the government though. It is ironic that the taxes the private sector collect and pay go towards fantastic pensions for those who work for the government, while those in the private sector generally cannot afford decent pensions / usually end up with a tiny pension by comparison.

Yes, we know the average pension pot of public servants is worth close to a million if you were to buy it. However most people in the private sector cannot afford, after paying all the other bills and expenses and cost of living, to put a million in to a pension. Dream on.

Good point, with a left wing government in the future strapped for cash I reckon this will likely happen. After all, did not another Irish government raid pension funds about 12 years ago? Just one or 2 percent but still? And in Greece the government there took some or all savings over 50k?