Pensions for beginners

U

Unregistered

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Hi

I recently started a new job with a defined contribution benefit the max I can contribute under the scheme rules is 5% of my salary (my employer matches this contribution). My previous employer operated a Defined Benefit Pension which I feel guaranteed a much better return on retirement (2/3 final salary). I have a few questions about my new pension. Forgive my ignorance but my last pension was looked after by my employer 100% but now I feel the need to be on top of things.

1 - I'm 24 - is 10% of my annual salary (€42,000) enough to be contributing to my pension?

2 - is it possible for me to open a PRSA even though I already have a pension?

3 - Is it possible to start a Defined Benefit Pension personally or are these a thing of the past?

4 - If I should take an additional pension - any recommendations on what pensions I should be looking at?

Thanks in advance.
 
Unregistered said:
1 - I'm 24 - is 10% of my annual salary (€42,000) enough to be contributing to my pension?
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It's certainly a good start. Check out the [broken link removed] to see what you might end up with at the end of the day. Given that your employer is matching your contribution, you are getting an unbeatable 100% immediate return on your investment, so it's pretty much a no-brainer to go ahead with this, unless you're going to need to get your hands on this cash in the short term (e.g. house deposit).


Unregistered said:
2 - is it possible for me to open a PRSA even though I already have a pension?
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Probably not, but your employer probably offers an AVC (additional voluntary contributions) so you can put extra money away, if you can afford this.

Unregistered said:
3 - Is it possible to start a Defined Benefit Pension personally or are these a thing of the past?
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No - your only option to get back into a DB scheme is to find an employer who provides this and change job.
Unregistered said:
4 - If I should take an additional pension - any recommendations on what pensions I should be looking at?
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See answer 2 above re. AVC's.
 
Thanks for that - I will look into AVCs.

I think my main concern is that all my eggs are in one basket as far as my pension is concerned.
 
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