Generally, people are living longer and leading more active lives in retirement. As a result, it is more important than ever for you to think about where your income will come from when you retire. Your State pension will provide you with a basic level of retirement income, provided you qualify. When planning for retirement you will need to decide whether this is enough to live on in retirement and if not where your additional income will come from. It is important for you to take control of your retirement planning and make decisions regarding your pension.
Broadly speaking, most peoples’ pensions come from one or more of the following:
- An occupational pension scheme (also known as a company pension plan
- A PRSA (Personal Retirement Savings Account)
- A personal pension plan (RAC – Retirement Annuity Contract)
- The State pension
The type of pension which relates to you generally depends on your work situation, you should talk to your employer, trade union, colleagues, financial advisor or friends and check out our 'What are my pension options?' booklet.
Who will look after you in your retirement?
The current State social welfare pension is €230.30 per week or
€11,976. per year (as of Jan 2010)
…….will this be enough for you to live on ?
Eight out of ten people taking part in The Pensions Board Consumer Research said that the State pension would not meet all their needs in retirement.
Where will your additional income come from when you retire?
- Only 54% of the adult Irish workforce over thirty years of age
- Only 56% of men in the Irish workforce
- Only 50% of women in the Irish workforce
- Only 45% of those working in the agriculture industry
- Less than 25% of those working in
- a seasonal / part-time capacity
- the catering and tourism industries
….…have private pensions (Source: CSO Survey Dec 2005 & Pension Update 2008)
The average person retiring tomorrow aged 65 years has a life expectancy of between 20 – 23 years, that’s a significant amount of time to enjoy in retirement.
It takes a long time to save for retirement and the earlier a person starts to contribute to a pension, the better.
For those who switch off at the first mention of pensions, it’s time to get informed.
Starting a new job? – ask about your pension !
Did You Know
- By law your employer must provide you with access to a PRSA, where there is no company pension scheme in place or where you can not fully access the company pension scheme, regardless of whether you are in full-time, part-time, temporary, contract or casual employment.
- You are legally entitled to information about your employer’s pension scheme or your PRSA, thanks to the Pensions Act.
- You can save for retirement even if you are not working through a PRSA.
The Pensions Board publishes a wide range of very practical information booklets on all aspects of pension related issues.
All these booklets are available free of charge and can be ordered from the Board's Information Unit at email@example.com Lo-Call – 1890 65 65 65 or can be viewed and downloaded here from the Board’s website www.pensionsboard.ie