advice on pension

hi there, as some here might recall sometime ago i asked for help on deciding on a pension and with your help i have.

so this is the breakdown.
newireland group retirement plan

my contribution is 127 euro a month (3.5% momthly salary)
employer contribution is 236 euro a month(6.5 %)

i only started on 1st feburary 2017.

my wife works parttime in a school (not a teacher) also on a pension she works in a youth reach centre and pays into a contributory pension.
when we retire and well before we will have our now small mortgage paid.

so i am just asking what people think of this pension and any recoomendations you would offer.

we both dont want to be struggling in retirement.

Your salary is approx €43,500 and you are putting about €1,500 into your pension pa.

Depending on your age and length of time to retirement this would seem very low.

yes i am 48, would you recommend me to increase contributions and by how much would you reccommend

What are the projections for your income at retirement?

Would a combined €1,200 per month for 17 years give you a pension of €1,000 per month?

But you are a 20% taxpayer so €950 per month might be too much.

Including employers contribution you are putting €4,356 per annum into your pension, over 20 Years that gives a pot of €87k. If it grows at 4% pa for the 20 years that is approximately €122k available at age 68.

Today that would buy a pension of €3,600 per annum, approximately.

You know better than anyone if that is enough.

fogfurn said:

yes i am 48, would you recommend me to increase contributions and by how much would you reccommend

Click to expand...

That's an impossible question to answer as we know nothing about you, the cost of your life or your plans in retirement. You may want to just potter around at home or you may want to travel the world.

Funding for retirement is expensive as most people will live for 25 - 30 years after they stop work. You are basically saving all the money over the next 17 years to pay for the following 25 years years expenditure.

The 6.5% contribution from your employer is a decent enough contribution from your employer. You should see if you can afford to match it and go from there. When you get a pay rise, increase your pension contribution and try to keep you lifestyle expenditure the same.


Steven
http://www.bluewaterfp.ie (www.bluewaterfp.ie)