Contributing €550 per month to pension but only eligible to receive €400?

J

Jowdow

Guest
I am currently putting 550euro into my private pension fund with BOI every month and have been told that I will receive only the equivalent of 400euro per month once i have retired at 65, HOW can this be???? can anyone tell me if there is anything I am missing here?!?!??!
 
Re: Pension

Please note the Posting Guidelines on making thread titles relevant to the question asked. I have edited this one.
 
What charges (e.g. initial units involving premiums for certain initial months that go totally on charges, per contribution charges including bid-offer spread, annual management charge, monthly policy fee etc.) apply to your pension fund - including any that may have applied in the first 6 months to 2 years or so? On what basis (e.g. assumed growth etc.) is the pension income being projected? Who advised you on the purchase and management of this plan?
 
It's the accumulated value of your pension fund when you retire that determines your pension income. Your cuirrent monthly contributions increase the value of the fund, but you can't directly calculate a pension income from them.

What age are you now? The older you are now, the lower your pension fund will be when you retire. If you accumulate your fund over 20 years, and expect to live for 30 years after retirement, you might expect the pension income to be lower than your contributions!

€400 per month is a projected income, based on a number of assumptions. You need to find out what those are, to understand where the figure is coming from.

Is the €400 adjusted for inflation? €400 in today's money could be worth €600 or €800 or ... per month when you retire.
 
Don't forget and I assume you are getting tax relief on the contributions. If you are paying tax at 42% plus 6% PRSI the cost to you is 286 pm.
 
You must log in or register to reply here.
Back
Top