Starting Pension at 61

[cmtc01]

Hi I have a small pension with another company - which matured when I reached 60.

My current company has now offered that I can join their company pension. I am 61 and would be able to put in the full 40% (with a small company contribution of 5%) of my salary until retirement (contract is up at 65 with rolling contract going forward). I am not a high earner and the maximum that would be going in every month would be approx €1k. Is it worth my while doing this until retirement in the company pension, or should I think of putting that money somewhere else. I have no investment knowledge. I was looking at the company policy and the investments are fairly conservative due to my age. Any advice would be welcome. Thank you.

 

[Brendan Burgess]

Are you married or single?
What is your combined income?
Is the other pension being paid to you every month? How much is it gross each month?
Have you any income outside your salary?
What marginal tax rate are you paying?

Do you have savings and investments - if so how much?
Do you own your own home and do you have a mortgage?

 

[Steven Barrett]

It is worth doing purely because your employer is contributing 5% and the AMRF is no longer in place. But don't expect much at the end. Of the small pot that you have, 25% will be tax free and the remainder taxed as income. You will probably be able to draw this down over a number of years in a tax efficient manner and then the money will be gone.

Don't be relying on what you accumulate to provide you with an income for the rest of your life. It is a tax efficient method of saving for the next few years.


Steven
http://www.bluewaterfp.ie (www.bluewaterfp.ie)