Non Contributory Pension

G

gg

Guest
I am starting a job with a Non Contibutory pension scheme , I have never had a pension , what does this mean , can I still collect the old age pension wheni reach the age , what happens if I leave the company in 5 years time?
 
Pension

I'm open to correction, but in my opinion:

Non-contributory pension:
This means that your employer will not be paying any contributions to your pension.

"Can I still collect the old age pension when I reach the age"
Yes, but if you depend only on the state provided pension, then you will need to live quite frugally when you retire. (I don't have the figures to hand)

"What happens if I leave the company in 5 years time?"
You have a number of options, depending on the type of scheme. With a defined contribution scheme, you can usually leave your money in the scheme until retirement, transfer the money in to a scheme provided by your next employer, or transfer the money out via a buy out bond which will give you income on retirement.

If your employer is offering a non contributory PRSA, the options may be slighly different.

Overall, many people would advise investing in a pension to supplement the state provided amount on retirement. You can get tax relief on contributions made, though you will be liable to tax when you start drawing down your personal pension on retirement.
 
Re: Pension

HI gg

A non-contributory pension is the opposite of Aidan's description! The employer contributes but you are not obliged to contribute at all.

Brendan
 
Re: Pension

I think the confusions arises between social welfare non-contributory old age pension and non contriburory occupational pension.
ajapale
 
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