Pension...do I start one or not ?

[mum3]

Hi ,
just starting new job with company which have pension option.
I am 39yrs old - no previous pension , and not sure how long I will be kept on .......in this current economic climate :-(

Dont know what to do... do i start contributions or is it too little too late? Any advise would be really appreciated.

Thanks

 

[mmclo]

Ideally yes unless you want to be very hard up in your 60's and 70's

Other factors would be, does the emploer contribute? This is more important given the state is reducing the tax reflief.

Tax relief is declining from higher to lower rate over the 4 year plan. So with modest growth you still make some gain in your fund but less than before or with poorer "discount" on what you're putting in.

It's still a good deal as it would be hard to get say 24% growth on any investment (tax relief plus av. growth) and the relief is a little more in the next year or two.

if your employer contributes I'd say definitely

 

[z107]

You could also find out if your new job will give you extra money instead of a pension.

 

[Marietta]

You are 39 years old so a bit late to be starting a pension especially as the early years will all be taken up by charges. I reckon you would be better off putting your money into An Post 10 year solidarity Bond at least it is guaranteed and in ten years time hopefully your money will be guaranteed. I know far too many people who have been burnt to the core by so called pension funds this past couple of years.


Ps seeing your job is going to be insecure all the more need to steer clear of contributing to a pension fund.

 

[GSheehy]

Tax relief is declining from higher to lower rate over the 4 year plan.

That's the proposal in the plan, but the Minster has left the door open for negotiations with industry. He (or rather his successor) may agree to an alternative method of collection the €700m from pensions ie a levy on pension fund.

An Post 10 year solidarity Bond at least it is guaranteed and in ten years time hopefully your money will be guaranteed.

There is no mention of the word guaranteed in any of the NSB literature. 'Capital Secure' or something to that effect, but not guaranteed.

GS

 

[mum3]

Thanks for your replies - will look into other options (like the An Post Solidarity Bond)
everything is a worry these days..... worrying