thank you, but no my employer only pays a percentage of my salary which is across the board in the industry i work in. how much would you recommend me to increase my contribution toAt that contribution rate, you would be doing well to build a pension pot of much more than €100k by 65 in 2016 terms (assuming a real rate of return, after costs, of 3% per annum).
That would only give you an income of a few grand per annum in retirement so you might want to consider saving more aggressively.
Your employer's contributions look pretty generous - would any increase in your contributions be matched by your employer?
thank you, but no my employer only pays a percentage of my salary which is across the board in the industry i work in. how much would you recommend me to increase my contribution to
hi there just looking for opions and advice please, i am 46 and just started a pension, my monthly contribution is 106 and my employer pays 200 towards that monthly, my question is do you you think that will build to a reasonable pension in 20 years or should i increase my contribution, i know alot depends on how pensions will do in the future, but if any one could give me their opinon or advice please.
to be honest i have not a clue,taking into account that all debths will be clear (which is very little right now) and going by todays times and minus my mortgage, travel to work and after all those i have 1600 a momth to live on which does well to be honest out of that i spend 200 a month on hobbies so i suppose approx 1200 to 1400 a monthWhat in your opinion is a 'reasonable pension'?
What in your opinion is a 'reasonable pension'?
It is very difficult to say what is reasonable. Here in Switzerland the most common calculation is: Assume you will need 65% of current salary in retirement so for arguments sake let's say 65% of 25k => 16,250, then take off the expected state pension say 11K => means you need to cover the short fall of 5,250. Next assume a annuity of say 2% and that points to a savings at retirement of about 260K. After that it is a case of projecting your savings into the future...
I always thought the rule of thumb was 2/3 of your final salary not your current salary
How will I know my final salaryI always thought the rule of thumb was 2/3 of your final salary not your current salary
How will I know my final salary
Hi steven. As well as my pension is there any other way I can save for retirement separate from my pensionIt's not a rule of thumb, it's a revenue maximum. Not many people get to that maximum!
Steven
http://www.bluewaterfp.ie (www.bluewaterfp.ie)
That's the maximum pension that can be provided under a company paid scheme.
It's not a rule of thumb, it's a revenue maximum. Not many people get to that maximum!
Company prsa pension scheme private sectorIs it a company scheme the OP didn't say whether it is a private pension or company
The rule of thumb reference is a rough guide line that was use by a lot of pension providers maybe they don't use it today but it was used when I was taking out my PRSA
Hi steven. As well as my pension is there any other way I can save for retirement separate from my pension
Is it a company scheme the OP didn't say whether it is a private pension or company
The rule of thumb reference is a rough guide line that was use by a lot of pension providers maybe they don't use it today but it was used when I was taking out my PRSA
I always thought the rule of thumb was 2/3 of your final salary not your current salary
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