Pension given reduced life expectancy?

J

johnny_adida

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I am 35 this year, with mortgage paid, married with one child.
I have just completed a long 18 months of treatment for a serious illness. Although in relative good health at present, due to the treatment received/possible return of illness, I am wondering if there is any point in starting a pension for myself?
I assume I cannot get a pension now with a payout on death?
I will not be able to obtain life insurance at this stage and am throwing the majority of my salary into a simple savings account.
I had not started a pension up to now as I wanted to pay off as much of our mortgage as possible first, but it is now paid following my illness. Should I just put the money into a good pension for my wife so she is looked after or can my pension contributions even be used that way for someone else?
 
1. Good to hear you are in fairly good health now, Long may it continue !.

2.Great you have mortgage paid off.

3. Pensions are very Tax effective , and since you have mortgage paid , you can max the contributions.

4. If you can tie into a company pension, do so, but get clarity over the terms etc.

5. Do you have any good /local advisor? If not let us know general area you live in and some poster will point you in a good direction.

6. Your pension fund will ,should you die , be part of your estate and will go to your wife . ( make a will now)
 
Simple, to the point advice. Thank you very much. I will check around for an advisor and failing that will post back.
 
Hi Johnny

I'm glad to hear you have come through your illness, it sounds like you had a rough 18 months.

If you start a personal pension plan and die before drawing down the benefits, the full value of your pension is paid to your estate tax free. If it is a company paid plan, the lump sum payable is 4 times salary.

You also have to consider what if everything works out ok? Medical science is progressing all the time and your illness may be fully curable in a number of years. There's no harm in having plans for your own future too.

A personal pension plan is a very tax efficient method of providing for your wife for the future, although probate is very slow in this country. Make sure your will is up to date and that you have savings accounts in joint names too.


Steven
www.bluewaterfp.ie
 
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