# How much should i be paying into my pension ?



## Pauliwalnuts (21 Oct 2007)

Hi all,
First post so be gentle. Long time user of this great site.

I have recently been contemplating whether to pay more into my pension or not. I am 32 years old & earn 55k per annum.

I have been in my companies pension scheme since I was 21.
I pay 4% into it while the company pays 6% so thats 10% of my salary in total. 

I allready have a house & savings of 17k in Rabo, 5k Halifax Regular saver & 13k worth of Shares in my company.

I figure that I should probably be putting more into my pension since it is very tax efficient. I realise that contributing say an extra 200 per month will only really cost me 104 euro which I would hardly notice.
I have no idea though if that is enough to be paying or not.

Typically how much should someone my age be contributing towards my pension ?? 
The thing I suppose that I don't like about pensions is the fact that my money will be locked in for another 33 years before I can touch it.

I am going to start a Quinn Life Equity fund as well & will start by selling 1270 worth of the existing company shares that I have while making a regular monthly contribution of 300 per month. 

The thing I suppose that I am contemplating is whether to just leave my pension as is & actually put even more towards the Quinn life fund or does my strategy of contributing an extra 200 pm month into the pension sound like a good idea along with my Quinn life fund.


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## ClubMan (21 Oct 2007)

Pauliwalnuts said:


> I realise that contributing say an extra 200 per month will only really cost me 104 euro which I would hardly notice.


You mean €106 after tax (41%) and _PRSI_/health levy (6%) relief?


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## Pauliwalnuts (21 Oct 2007)

Thanks for the clarification Clubmnan


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## GeneralZod (21 Oct 2007)

The pensions board have a calculator you could put your current fund value into and see at what level you need to contribute, given growth assumptions, to achieve your retirement income targets. 10% pension sounds low but you did start early so perhaps you've a semi decent fund by now to compound over the next 30 years.

Selling your company shares is a good idea as it diversifies away from your employer. 

Splitting your savings plan between pension and QL makes sense so that you have some funds to access in the medium term.


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## ClubMan (21 Oct 2007)

GeneralZod said:


> Selling your company shares is a good idea as it diversifies away from your employer.


I agree. Also ... look at it another way - if you didn't get shares through the job (e.g. _ESPP/ESOP _or otherwise) would you be going out buying them in the first place? If not then you should sell to crystallise any gains/benefits (e.g. the discount on _ESPP _shares etc.), pay the relevant taxes arising (e.g. _RTSO1 _income tax on _ESPP_) and invest elsewhere.


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