MAKING CENTS: It may pay off to plan early for your pension

When it comes to financial tasks that we put off dealing with, pensions tend to top the list. It’s easy to prioritise day-to-day spending when juggling multiple commitments and much harder to put money aside for the distant future. But inaction now could have a serious impact on future quality of life, writes Gráinne McGuinness.

If you aspire to enjoy your retirement you need to make a financial plan for that future. An aging population and increasing life expectancy means that the state pension is expected to come under growing pressure. The current maximum state pension is €233.30; payable to those over 66 — but many expect to see the amount fall in real terms in the coming decades while the qualifying age rises.

Minister for Social Protection, Leo Varadkar admitted as much recently when calling for pension reform: “The current situation where a majority of our citizens will rely solely on the State pension in retirement is unsustainable.”