irish life pension

Hi

Both my husband and i are very green when it comes to pensions -we need advice as to which is the best action to take. My husband had been paying into a Executive Standard Pension up till May 07 and was advised that the value then was 9500euro approx, the value as of today is 5500euro.

When he changed employers in May 07 he then started to pay into a PRSA Standard plan 265euro monthly for the last 2 years. (paid in nearly 5500euro) value at 3500euro now.

We are very dishearten with the value of these, do we pull out, would we be better saving the direct debits into an post bank account at least we would have better returns.

Thanks

I'm no expert but I think this is nothing to worry about unless you plan to retire soon. The value of a pension will go up and down with the markets with the recession it is bound to be low but it will rise again in time when things get back to "normal." I think you should continue- the price of shares is low now so you'll get good prices and you are saving on tax too- in a deposit a/c you'd have to pay dirt on earnings already taxed- don't do that!!

Thanks for that make us feel a little better - just got such a fright when i saw the balances - quiet difficult to save the money - hate to see it not making anything for us.

I think you should ask people who have retired in the last few years, yes even in the Tiger economy, how well they've done. I know several people who have got far far less than they expected. If you put money into a pension you need to be guaranteed a basic amount. Does your pension provider include the state pension? they might not tell you this and I know people who only realized this near their retirement age. One person I know was only getting 10 euros on top of their state pension after paying large amounts every month for over 30 years. You're better getting a fright now and not 30 years from now!

Actually, you're husband is paying in a lot less than I am, and at present values, I'm getting killed. It's a real temptation to pull out of ILs scheme, but I'm gambling that the amount of units I'm buying up now at low prices will generate a good return in a few years time when the markets (we all hope) come back up. Since I have about 20 years to retirement, I'm hoping it's a smart move. It all depends on how old your husband is.