Pension planning advice sought

[NEW ORDER]

Hi, Am single male,62, full time employment. No debts, homeowner, mortgage free and have no children. Have employer pension pot now at 110k, will receive full OAP UK Pension with Irish OAP pension. Have 200k from property sale to invest for my retirement and hoping someone on here can offer any guidance / experiences on the best approach to investing this 200k. I live a modest enough lifestyle, probably best to be risk adverse at my age !! just looking to have enough income to sustain a decent retirement.
Thanks for any advice that may be offered,
Rgds, Martin

 

[ClubMan]

Have employer pension pot now at 110k

What sort of pension (occupational, PRSA etc.), what's it invested in, what charges apply, what employer contribution do you get, what percentage of your gross are you currently contributing?

Are you maximising contributions up to your age related tax relief limit? 40% in your case?

Tax relief limits on pension contributions

This page outlines the tax relief limits on pension contributions

www.revenue.ie

When do you anticipate retiring?

probably best to be risk adverse at my age !!

Not necessarily (ignore recent/ongoing market tumult). Full Irish and UK state pensions from age 66 (?) are basically a guaranteed annuity that may give you more scope for being more adventurous than you think. I.e. Together (even after tax) they may provide you with your basic income which you might supplement with returns from investing the €200K appropriately.

just looking to have enough income to sustain a decent retiremen

Best to put actual indicative figures on this to plan better. E.g. look at a year's worth of bank/credit card statements up figure out what level of income you need for normal expenditure under various headings.

 

[IRFUPaddy]

There’s an argument for maximising pension contributions via AVCs then investing the rest outside of a pension.
75% of any AVC will likely end up in an ARF so you can invest this portion for growth.
You’d want to plan to spend the non-pension money earlier in retirement as this will be subject to tax on growth while the pension/ARF will grow tax-free.

If you have no immediate needs for the TFLS from your occupation pension you could leave this invested and growing tax free even after you stop work.
You could use you €200K plus any growth to cover income needs to 66 and 67 then only crystallise the pension if you require income above the 2 OAPs.

You’d probably benefit from a financial advisor who can create a plan for you. Fees likely to be a few 1000 euro will likely benefit you several times over in extra growth and tax saving.

 

[AJAM]

At 62 you can contribute 40% of your salary into your AVC pension.
You should do this and use the 200K to make up for the hit in take home pay.
This is a tax free way to benefit from the 200K.

In the mean time keep the 200K in a good saving account.

 

[NEW ORDER]

Thanks a lot folks for taking the time to respond..great to get advice and links to further guidance. IRFUPaddys advice on dealing with a financial advisor will be taken on board..like my job so hope to keep working as long as the health is good. Best wishes, Martin