Pensions

Introduction to Pensions

Generally people are living longer and leading more active lives in retirement. As a result it is more important than ever for you to think about where your income will come from when you retire. Your state pension will provide you with a basic level of retirement income, provided you qualify. When planning for retirement you will need to decide whether this is enough to live on in retirement and if not where your additional income will come from. It is important for you to take control of your retirement planning and make decisions regarding your pension.

Broadly speaking most peoples pensions come from one or more of the following:

An occupational pension scheme (also known as a company pension plan)
A PRSA (Personal Retirement Savings Account)
A Personal Pension Plan (RAC Retirement Annuity Contract)
The State Pension
Inform yourself about your pension its YOUR responsibility!

Who will look after you in your retirement?
The current State social welfare pension is €223.30 per week or € 11,611.60 per year (as of Jan 2008)

Will this be enough for you to live on ?
87% of a Pensions Board Consumer Research survey said that the State social welfare pension would NOT meet their needs in retirement.

Where will your ADDITIONAL income come from when you retire?

The Facts ::

Only 61.8 % of the adult Irish workforce over 30 years of age
Only 58.3% of men in the Irish workforce
Only 50.6% of women in the Irish workforce
Less than 25% of those working in
? the agricultural industries including farming
? working seasonal & part-time
? working in the catering & tourism industries
….…have private pensions (Source: CSO Survey Dec 2006)

Start your pension early, the longer you leave it, the more you pay !

A man retiring at 65 now can expect to live to 81 and a woman retiring at 65 can expect to live to 84!
It takes a long time to save for retirement and the earlier a person starts to contribute to a pension, the better.
For those who switch off at the first mention of pensions, its time to get informed.

Starting a new job ask about your pension !

Did You Know?

By law your employer must provide you with some form of access to a pension, whether you are in full-time, part-time, temporary, contract or casual employment.
You are legally entitled to information about your employers pension scheme or your PRSA, thanks to the Pensions Act.
You can save for retirement even if you are not working through a PRSA