New pensions guide bids to help with retirement plans

People of all ages were urged to begin thinking about their pensions today as the Financial Regulator published a new guide on the subject.

Pensions Made Easy gives straightforward information to help people understand their options and make informed decisions when planning for retirement.

Consumer Director Mary O’Dea said pensions are often the most difficult of all financial products to understand.

“This is of concern to us because people will often avoid making decisions about their pension because they find it difficult to understand what their options are,” she said.

“If you want to start planning for your retirement, this new guide is the place to start.

“No matter what your personal circumstances, or your age, it is important to think about your pension. Having even a small pension is better than having none at all.”

Mary Hutch, Head of Information and Training at the Pensions Board, welcomed the publication.

“This new source of pensions information will be an additional boost to the range of information booklets on pensions options and pensions matters generally made available by the Pensions Board,” she added.

The guide explains the different types of pensions:

:: Employer pension plans,

:: The personal pension and PRSA options available to self-employed people and those in non-pensionable employment; and

:: The PRSA option for people who do not have an income.

It also explains what people who move job or want to retire early need to consider.

For those close to retirement, the Financial Regulator has just produced a separate booklet, Your Choices at Retirement, which explains how to use a pension fund to provide an income.

Recent research from the Pensions Board showed that 46.8% of women and 56.3% of men have pensions.

There are many ways of providing an income for retirement, such as putting money into a savings account, investing directly in the stock market, or buying property.

But pension plans are attractive to people earning an income because they give generous tax benefits unavailable with other forms of saving.

Pensions made easy and Your Choices at Retirement are available by phoning the consumer help-line on lo-call 1890 77 77 77, by visiting www.itsyourmoney.ie or by calling into the Consumer Information Centre at College Green, Dublin 2.

The Pensions Board’s full range of information on pension options can be accessed online at www.pensionsboard.ie or by calling LoCall 18 90 65 65 65.