Good time to start pension?

[buttonmoon]

Silly question maybe ... what with all this talk about recession and what not, is now a good time to restart my pension?

My situation: I'm 29, on 60k, have about 10k in a pension from my previous job. I started my current job a year and a half ago and the new company doesn't offer any pension contributions. They have some thing with BoI where you can pay into some pension scheme (they are req'd to do this by law AFAIK) but it's not a great scheme, if I remember correctly (having looked it up on AAM at the time) so I didn't bother setting it up.

I do want to get the pension up again though, so, is it a good time to start saving into a pension? are there any recession proof/resistant schemes or products?

I know that there is no way to 'know' these things for sure but I suppose I'm looking for either a) a low risk scheme or b) advice on a product that focusses on investments that *traditionally* do well in a climate such as this.

 

[ClubMan]

They have some thing with BoI where you can pay into some pension scheme (they are req'd to do this by law AFAIK) but it's not a great scheme, if I remember correctly (having looked it up on AAM at the time) so I didn't bother setting it up.

You might want to be a bit clearer on the details here. What you have posted is extremely vague. I suspect that you may be talking about a PRSA with the maximum standard PRSA charges of 5% on each contribution and 1% annual management charge? I presume that they don't match employee contributions to any level?

I do want to get the pension up again though, so, is it a good time to start saving into a pension? are there any recession proof/resistant schemes or products?

Don't bother trying to time the market. All things being equal just try to contribute for as long and at as high a level as possible/suitable for your specific circumstances.

If you don't already own a home and are planning to buy one imminently then you should probably consider concentrating on saving for that first. If you have any outstanding debts then you should consider reducing/clearing these first.

 

[buttonmoon]

You might want to be a bit clearer on the details here. What you have posted is extremely vague. I suspect that you may be talking about a PRSA with the maximum standard PRSA charges of 5% on each contribution and 1% annual management charge? I presume that they don't match employee contributions to any level?

Sorry, couldn't really remember the exact details but now that you say it, that sounds about right... also, correct about employer not matching any contributions.

Don't bother trying to time the market. All things being equal just try to contribute for as long and at as high a level as possible/suitable for your specific circumstances.

Yeah, I know it's nigh on impossible to time the market. I guess I was wondering if there was some kind of pension product - not specific shares, mind - that might offer lower risk, lower potential gains (hopefully while still beating inflation obv!). I know there're no guarantees with such things. Maybe I'll just pick one from the best buys and hope for the best.

If you don't already own a home and are planning to buy one imminently then you should probably consider concentrating on saving for that first. If you have any outstanding debts then you should consider reducing/clearing these first.

I am actually saving for a house at the mo with my partner. I've about 35k saved and we've about another 5k saved in a joint a/c (all spread over NIB and Rabo accounts for the good int. rates - as per advice in Savings & Investments).

We own an apartment that's currently valued at about 375k and have about a 260k mortgage on that. That's our only debt. I was thinking of putting a chunk of savings off the apartment mortgage but thought that I might regret it if we see a house we really want but can't buy because we can't sell the apt on time.

What do you think?

 

[ClubMan]

Yeah, I know it's nigh on impossible to time the market. I guess I was wondering if there was some kind of pension product - not specific shares, mind - that might offer lower risk, lower potential gains (hopefully while still beating inflation obv!). I know there're no guarantees with such things. Maybe I'll just pick one from the best buys and hope for the best.

Lower risk generally means lower returns. Unless you are very near retirement you should at least consider going for a high equity content, high risk/reward pension investment with a view towards maximising returns over the long term. Choosing more conservative and lower risk/reward investments may simply limit the scope for long term growth.

What do you think?

If you already own a property, are thinking of trading up and already have significant savings then it may make sense to also (re)start saving towards retirement. In which case it might be worth checking out the options for low charges PRSAs or personal pension plans aiming for c. 1% annual management fee and no other charges if possible.

To identify products suitable to your specific needs you may need professional advice.

 

[buttonmoon]

Right, I'll do that. Many thanks ClubMan.