New advice for workers on pensions

The Pensions Board has today reminded employees, and those soon looking for a job, not to forget the importance of a good pension.

Speaking at FÁS Opportunities 2008, the annual event focused on careers, further education and skills-building, the board highlighted that existing employees, but also those who are changing careers or reskilling, must be always mindful of the importance of maintaining a pension.

“When people come to decide on a career and where or who they want to work for, a range of criteria are weighed up,” said David Malone, head of Information Services.

The board urged people to put a pension in the mix of the criteria when talking to a prospective boss about terms and conditions, as it was vital for their financial future in retirement as the cyclical nature of industry and life meant many people were changing jobs and professions more regularly now.

Patrick Burke, chairman of the Irish Association of Pension Funds, said a 25-year-old starting a defined contribution pension today, saving the average combined employer and employee contribution of 10% of salary a month, would need to continue working until age 75 to secure a pension on retirement of 50% of salary.

He said there should be no hard rule about retirement dates, but people needed to save more if they wanted to retire earlier.

Once people had all the information they needed about pensions they should visit the online pensions calculator at www.pensionsboard.ie to work out, as a guide, how much they should be contributing to their pension.

The calculator allowed people to estimate the amount of money they would need to contribute to your pension to end up with the level of pension they expected in retirement.

It would also work out the tax relief they got in relation to their contributions based on their age and current salary.

For more information and details on this topic, see www.pensionsboard.ie.

Article courtesy of The Evening Echo newspaper

More on this topic

Lack of pension planning a 'ticking time bomb', experts warnLack of pension planning a 'ticking time bomb', experts warn

Almost half of adults do not have a private pension - studyAlmost half of adults do not have a private pension - study

Men claim €433 in pension payouts as women only get €280Men claim €433 in pension payouts as women only get €280

Irish pension funds told to 'diversify and de-risk over the coming year’Irish pension funds told to 'diversify and de-risk over the coming year’

More in this Section

Serious Fraud Office closes Libor rigging investigationSerious Fraud Office closes Libor rigging investigation

Johnson insists EU free trade agreement can be struck amid no-deal Brexit fearsJohnson insists EU free trade agreement can be struck amid no-deal Brexit fears

IDA Ireland: Era of optimism with growth evident in all sectorsIDA Ireland: Era of optimism with growth evident in all sectors

Renault warning of slowing sales haunts rest of European car industryRenault warning of slowing sales haunts rest of European car industry


Lifestyle

These are the nail hues to choose this season, says Katie Wright.Perfectly polished: 5 autumn/winter nail trends you’ll actually want to wear

This early 19th-century table is one of a number of Irish lots at Sotheby’s Style, Furniture and Ceramics sale in New York on Thursday (October 24).Irish lots poised to add bite to Big Apple sale

Something for all at Hegarty’s auction in Bandon, says Des O’SullivanSomething for all at Hegarty’s auction in Bandon

Des O’Sullivan gives a preview of the Irish selection on offer at two sales in DublinPreview of the Irish selection on offer at two sales in Dublin

More From The Irish Examiner