Too old for pension?

A

Auzzie

Guest
Hi
I am 39 and the company i am working for has offered me a pension(PRSA) they will pay 5% and it is at my own discretion thereafter what I pay in.
If i were to retire at 60 or 65 the Value would no be great after 20 or so years. My Question would be is it worth doing for this short period? Also is 5% good as rates go?

Many thanks in advance for any opinions

Auzzie
 
Re: Too Old for Pension

5% employer contribution is not bad especially if there is no onus on you to match/contribute. What charges apply? I don't think that 39 is necessarily too old to start a pension given the tax benefits. Obviously investing for 20-25 years will probably not be "as good" as investing for longer but that doesn't necessarily mean that it should not be done.
 
Re: Too Old for Pension

Auzzie said:
If i were to retire at 60 or 65 the Value would no be great after 20 or so years. My Question would be is it worth doing for this short period?
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Look at it this way - it will be a lot better than if you make no contributions at all.
 
Re: Too Old for Pension

Look on it as a way not to pay tax on a portion of your income - why would that not be worth it?
 
Re: Too Old for Pension

Yes - tax. And PRSI. And health contribution. This could be worth 20%/41% plus 4% plus 2% = 26% or 47% in all.
 
Re: Too Old for Pension

Thanks Clubman
Contribution Charges are 5% up to €12k and 3% thereafter and 1% annual fund charge
These seem to be in line with the Standard charges. would I be right in sayng that?

Regards
Auzzie
 
Re: Too Old for Pension

Auzzie said:
These seem to be in line with the Standard charges. would I be right in sayng that?
Click to expand...
5% on each contribution and 1% p.a. are the maximum that a standard PRSA can charge. There are better deals available but I suspect that many employer PRSAs just charge the full amount.

The cheapest PRSA?
 
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