Here's my stab at thisWhile a start and something is better than nothing I feel there is a big gap between reading the article and understanding what you need to do to get each of those pension amounts.
Eg. A person who is 30 with no pension will need to contribute x per month to have a pension equivalent to 33k take home today (assuming x% growth and that the state pension is still on the go).
Absolutely.While early is better, the message should also be that it's never too late.
It's closer to €17K from 2025.The gross state pension is €14,454 pa
It's closer all right, €12 a week closer!It's closer to €17K from 2025.
Pensioners should have 100% equities - side issues
These are the non-core issues moved from this thread https://www.askaboutmoney.com/threads/pensioners-should-have-100-of-their-retirement-funds-in-equities.238762/ Most threads go off down rabbit holes to such an extent that the ordinary reader trying to understand the issue gets alienated. I...www.askaboutmoney.com
Well, only if you include the living alone allowance and double payments…It's closer to €17K from 2025.
The gross state pension is €14,454 pa
It's closer all right, €12 a week closer!
It's €15,370 (53 x €290) if the Living Alone Increase is excluded and 53 weekly payments are assumed given the regular double payment at Xmas.Well, only if you include the living alone allowance and double payments…
As it happens, I could well afford an €8 pint but baulk at paying that for a luxury/non-essential purchase, so I don't.With a pint north of €8 now in Dublin City, €33,000 a year is a long way from being ‘comfortable’.
Your not wrong there Gordon, that's 4125 pints a year or just over 11 a dayWith a pint north of €8 now in Dublin City, €33,000 a year is a long way from being ‘comfortable’.
This, 100%.While it's important to start early, there are times in your life for which payments into a pension are easier than other. While early is better, the message should also be that it's never too late. My spouse was working for more than 10 years before he got an occupational pension. And then, with a small family, funds were limited so planning 30 years ahead was difficult. However while perhaps not ideal as a financial plan, we have been able to make substantial contributions now, which means we should be comfortable. Our finances change with time and it's important to reevaluate priorities. We are putting more funds in than if we had done it earlier. However for us, it's much easier now to put these additional funds away than 15 years ago.
Median earnings are €43k for all employees. That's all ages, part- and full-time in 2023. With wage growth probably €45k by now.At a high level, I reckon an individual would need a pension pot approaching €600k, plus a full State contributory pension, to meet the Pension Council’s definition of a “comfortable” retirement.
How have you calculated that it's €600,000 that you would need to accumulate by retirement to fund a €24 approx gross pension?Median earnings are €43k for all employees. That's all ages, part- and full-time in 2023. With wage growth probably €45k by now.
If you assume a 5% real return you'd need to contribute €5,000 per annum for 40 years to hit €600k. All inflation adjusted.
Obviously your earning profile over your lifetime is not the same and starting later hurts. Also many people don't make the full 40 years due to education, unemployment, kids, ill-health, etc.
Back to the point: is saving €5k out of a typical €45k (11%) possible? Very possible, but will require some sacrifice for some workers at key points in life.
You need a gross private pension of €23-24k on top of the full state contributory pension (which is about €14k gross currently) to give you a pension after tax of €33k which is the number they say is required for a 'comfortable' pension for an individual.Are these figures for retirement gross or net ? For an individual or couple ?
I assumed a 4% annuity rate for simplicity.How have you calculated that it's €600,000 that you would need to accumulate by retirement to fund a €24 approx gross pension?
I think it should be a lot lower than 600k?
Our case 2024 figs:You need a gross private pension of €23-24k on top of the full state contributory pension (which is about €14k gross currently) to give you a pension after tax of €33k which is the number they say is required for a 'comfortable' pension for an individual.
A couple, both having a state contributory pension would only require one additional gross pension of €15000 (with double the credits they'd have hardly any deductions) to get them to the comfortable figure for a couple of €42,300 net p.a.
I think another relevant point is that very often those in late career have paid off mortgages, raised kids, etc., and are a position to really start ramping up their pension contributions.Back to the point: is saving €5k out of a typical €45k (11%) possible? Very possible, but will require some sacrifice for some workers at key points in life.
I think the benefits of even small contributions at a very young age are poorly understood too.I think another relevant point is that very often those in late career have paid off mortgages, raised kids, etc., and are a position to really start ramping up their pension contributions.
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