# Calculating Pension



## ashagirl (2 Mar 2010)

I am looking to join a pension scheme in my workplace. I am currently on 30,200 and looking to contribute 4%. As I am rubbish at maths, can you let me know roughly how much per month that will be?


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## jpd (2 Mar 2010)

30,200 * 4 ÷ 100 ÷ 12 = 100.67 

There will be deducted before tax & PRSI are calculated, so that the net takehome pay will be reduced by about 70 euro.


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## Towger (2 Mar 2010)

While it is a start, it will not give you much of a pension.

What you need to do, is find a pension calculator which will allow you to enter the pension amount you would like to retire on, in today's money. There was one in old versions of MS Money and I think there are a few on-line. It will take inflation, years to retirement, interest earned, salary increases etc into account to estimate how much you need to put in to meet that target. Don't forget to factor in the state pension as well, which unless Ireland finds oil etc (and does not give it a way like our Gas) will be nowhere near as generous as now. 

Make sure you are sitting down when you see the result! The other solution is to join the Public Sector


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## ashagirl (2 Mar 2010)

They just emailed me and told me the maximum I can put in is 4% with the company also putting in 4%. 

Pension schemes are so confusing  I really feel that I need to get a pension organised because I will regret it in years to come! The public sector seems the only way  but seriously if went with 4%, would that mean I am roughly 70 Euro down?


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## jpd (2 Mar 2010)

That's correct - your take home pay will go down by about 70 euro.

Look on it as a compulsory saving of 100 euro. You will after all, get the money back as a pension - and hopefully it might have grown by then. 

Also, don't forget that in addition, the company will pay another 100 euro - in effect you will be putting 200 towards your pension and it will be costing you 70 euro.


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## deadlyduck (3 Mar 2010)

> That's correct - your take home pay will go down by about 70 euro.



+1.

Assuming you're a single person [no children and with "typical tax details"] earning €30200 pa, you'd currently be netting €2089 per month (without a pension).
By paying 4% of your gross into a pension scheme, the net amount per month will be reduced to €2016 per month- the net cost of the pension will be €73 per month.

You can download my net pay calculator to check out different possibilities and the impact on your net pay- see http://taxcalc.eu/monthlyss


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