# How much should I invest in pension



## ppbb (31 Aug 2006)

I'm 35 have approx 24k value in current pension (its a company pension with Eagle star approx 12 yrs running ) the company pays 6% into the pension I have only put in 1 % of gross earnings should I increase this and if so by how much?


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## AJC (31 Aug 2006)

ppbb said:


> I'm 35 have approx 24k value in current pension (its a company pension with Eagle star approx 12 yrs running ) the company pays 6% into the pension I have only put in 1 % of gross earnings should I increase this and if so by how much?


 
That all depends on what you expect from the pension. You need to get some financial advice, but as a *rough* guideline, if you would like the old 2/3rd salary at retirement, you are way way off the mark at 7% total contributions, and would need to raise it significantly. 

Assuming you earn 50k per annum The pensions board calculator (www.pensionsboard.ie) would suggest that you would need to contribute 21% per annum of you salary. I suggest you play around with the figures to get an idea and go get some financial advice.


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## tiger (31 Aug 2006)

Rule of thumb I've heard is half your age as a %, i.e. 17% in your case which would be 11% ontop of your employer.
Most people (including myself) would be short of this unfortunately...


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## ClubMan (31 Aug 2006)

I don't think rules of thumb are useful in this case as much depends on the circumstances of the individual. Somebody who does not own their own home should probably prioritise that above pension savings first. Similarly somebody with large/high cost debts should be looking at reducing/clearing those first. Somebody whose employer offers a contribution should generally contribute at least the minimum to secure the employer contributions. Somebody who can afford to might want to maximise their pension contribution tax/_PRSI_/health levy relief. And so on. Ultimately the right amount to contribute will be driven by the individual's targer retirement income.


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## Guest126 (31 Aug 2006)

Suggestions:


Get your pension consultant to show your expected pension as a % of your expected salary at retirement if you kept contributing as you are at the moment
Again, get the consultant to show what impact an extra 1% contribution by you would have on this expected pension at retirement
Then study the results, see what you think, take into acccount your other financial obligations and priorities and the tax incentives for pension contributions and make an INFORMED DECISION


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## ppbb (1 Sep 2006)

Thanks all.
I think CapitalCCC makes the most sense of the responses so far I shall investigate this with our pension advisor.
Thanks again for all your replies.


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