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.

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

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