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 people’s 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 – it’s YOUR responsibility!
Who will look after you in your retirement?
The current State social welfare pension is €219 (Jan 2014) per week …….will this be enough for you to live on?
Eight out of ten people taking part in The Pensions Board Consumer Research who do not contribute to a pension said that the State pension would NOT meet all their needs in retirement.
Where will your ADDITIONAL income come from when you retire?
- Only 54% of the adult Irish workforce over thirty years of age
- Only 56% of men in the Irish workforce
- Only 50% of women in the Irish workforce
….…have private pensions (Source: CSO Survey Dec 2005 & Pension Update 2008)
The average person retiring tomorrow aged 65 years has a life expectancy of between 20 – 23 years, that’s a significant amount of time to enjoy in retirement.
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, it’s time to get informed.