# Too late to start pension?



## toolate (17 Jan 2006)

I am 54 years old, currently working part-time who has never been in  a pension scheme.  Since being made permanent I have been offered a pension scheme.  I intend continuing to work until I am 60.  Is it too late to join now?


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## Conan (17 Jan 2006)

Absolutely not too late.
Any pension you build up will add to the State pension which you will receive from 65. Depending on the type of pension scheme you are joining, the amount of pension you will accumulate may be modest (based on short service), but it's surely better than nothing. And you will be entitled to take some of the pension in the form of a tax free lump sum when you do retire.
If you can afford it, you might also contribute additional voluntary contributions (AVCs) in order to buy additional pension benefits over and above that provided by the scheme.


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## Brendan Burgess (17 Jan 2006)

Hi Toolate

Before you decide to contribute, see if it's worthwhile. 

If you are paying tax at 20% and prsi at 4%, you will only save 24% of your salary.

If your income after retirement was high enough to bring you into the 42% rate, it would probably not be worth starting a pension scheme. 

If you do start a scheme, make sure that the charges are low. Some schemes have high initial charges, which would make a 6 year scheme very poor value.

And there might be better value coming down the tracks. Apparently the pensions board this morning recommended that the government should contribute €1 for every €1 contributed to a pension fund.


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## MugsGame (17 Jan 2006)

It's never too late to start saving for retirement. If the company are prepared to match your pension contributions, then it's a no-brainer. Otherwise, consider the points Brendan makes above.

Even if you don't decide to invest in the company pension scheme, you should start saving somewhere so you have something to live on later.


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## Fanny (19 Jan 2006)

As a part timer I wonder if there is a problem if I invest in a PRIVATE pension like PRSA and the 
*Old-Age Non-Contributory Pension is means tested? *
The fact that I have to buy an annuity which is more expensive for women makes me wonder if other forms of investment could be better.

Requirements: 

are aged 66 or over
are habitually resident in the State
have a valid Personal Public Service (PPS) Number
satisfy a means test.
Fanny


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## Mairead (23 Jan 2006)

I am a full time mother with no pension and my husband does also not have a pension. We are currently looking at setting one up. He is 37 and I am 33. What is the min. that we should be looking at paying into it each month to make sure that we would be okay in our retirement?


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## RainyDay (23 Jan 2006)

No simple answer - but check out the pensions calculator over on the the Pensions Board website to get some ideas.


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## ClubMan (23 Jan 2006)

Fanny said:
			
		

> The fact that I have to buy an annuity which is more expensive for women makes me wonder if other forms of investment could be better.


It is not longer mandatory to buy an annuity. You can take 25% of most or al pensions as a tax free lump sum and then you can either buy an annuity with the rest or roll it over into a further pension investment. The Pensions Board has information on the options available to pensioners on retirement.


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