No, it's because that's the reality on life outside AAM.
Is that because individuals may have 2 , 3 or even 4 of these pots accumulated at different employments over a working life?
I would hope at some point that changes. The SFT was higher before the bust and so was the salary cap....No mention in the bill of raising the salary cap for employee contributions from €115K that I can see. Will be difficult for most to reach €2.8M given the salary cap.
Quite a few people end up with their whole fund paid as tax free cash.Reality check: the average pension pot maturity is still well under €200,000.
Quite a few people end up with their whole fund paid as tax free cash.
No mention in the bill of raising the salary cap for employee contributions from €115K that I can see. Will be difficult for most to reach €2.8M given the salary cap.
How?Quite a few people end up with their whole fund paid as tax free cash.
By having a tiny fund relative to their salary and length of employmentHow?
Not sure what you mean but if I put into compound interest calculator 3300e a month at 8% growth for 15 years on a starting fund of 277k this gets me to 2.4m in 15 years. Also presumes 5% contribution growth from salary increases and TF contribution limit increases. I'm 45 earning around 120 PA.Obviously there are a lot of variables to get there but is there any example of what say a €2m would look like from a career earrings and contributions with average growth would look like. Or someone want to share? I’m talking paye.
Not sure what you mean but if I put into compound interest calculator 3300e a month at 8% growth for 15 years this gets me to 2.4m in 15 years. Also presumes 5% contribution growth from salary increases and TF contribution limit increases. I'm 45 earning around 120 PA.
Company pays 8% and I contribute 25% so it should be ok there or thereabouts.
I was building up to the 25% over a few years and eventually got used to living without it.
AON will be assuming far less than an 8% return after fees. They’ll also be showing you an amount in today’s money (I.e. discounting it back at 2/2.5%).I put away about half that and won’t get anywhere near 1m according to AON. Been at it 7 years and have 25 more to go.
The power of compounding I guess?
Use the one at calculatorsite..comCompany pays 8% and I contribute 25% so it should be ok there or thereabouts.
I was building up to the 25% over a few years and eventually got used to living without it.
My pension is currently projecting 2.7million at 65 with standard enough (if relatively higher 5-10% of earners) paye jobs since 22 or so, and only ever putting in 5% AVCs until recently enough, with one 4 year gap. Currently retiring at 60 is projecting 1.8million, but those std projections are conservative. I expect 60 to pass the 2 million alsoObviously there are a lot of variables to get there but is there any example of what say a €2m would look like from a career earrings and contributions with average growth would look like. Or someone want to share? I’m talking paye.
My pension is currently projecting 2.7million at 65 with standard enough (if relatively higher 5-10% of earners) paye jobs since 22 or so, and only ever putting in 5% AVCs until recently enough, with one 4 year gap. Currently retiring at 60 is projecting 1.8million, but those std projections are conservative. I expect 60 to pass the 2 million also
The 2 million limit was too low imo, but I agree with the above 2.8 with indexing will be very hard to hit for normal workers. The main thing for me and I presume a good 10% of paye workers was 2 million was much too low and had people questioning whether to keep investing in their pension
It really depends on the lifestyle prior to retirement but if you ask me, 2m is loads of money unless you're a major spender. We're talking about a lump sum of 440k after tax and then initial drawdown of 60k in year one. You can have a lovely time with that once the mortgage is paid off etcMuch too low to live comfortably off?
i agree with the need for indexing in general but surly the tax breaks for a pension are ther to encourage people to save for a reasonable standard of living for retirement. Does €2m not provide that? What would it be a year?
It’s a decent number, but €60k a year gross is hardly living the high life.It really depends on the lifestyle prior to retirement but if you ask me, 2m is loads of money unless you're a major spender. We're talking about a lump sum of 440k after tax and then initial drawdown of 60k in year one. You can have a lovely time with that once the mortgage is paid off etc