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Pension -Should I Continue?

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  • 17-07-2009 11:06pm
    #1
    Jugs82
    Closed Accounts Posts: 627 ✭✭✭


    Hi,

    I have been paying into a pension now for 2 years or so.. - Its 4.5% of my salary which the company matches.

    In September, my GF is heading back to College and money will be tight so i was pondering stopping or reducing the pension contribution.

    Its would be well over 100 Euro or so extra a month to me which to be honest may be needed but would I stupid to stop making the payments in the Long Run?

    The fund has gone down a little (4% or so) but as i only pay 50% of the total in, I am still a good bit up as such. However, some of the older guys at work have seen their pensions collapse literally over the past year and aren't happy at all about this... (this makes me weary about pension payments in general if im honest)

    I'm 26 by the way so I suppose what im asking is, should I continue with the current contributions, lessen the contribution to say 1 or 1.5% or stop totally for a year or so?

    Thanks in advance

    Any advice would be greatly appreciated.


Comments

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    #2
    [Deleted User]
    Posts: 281 ✭✭ [Deleted User]


    If you reduce/stop your contribution, will the employer reduce/stop their contribution?


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    #3
    homer911
    Registered Users Posts: 5,119 ✭✭✭homer911


    What you are asking for is advice on a personal financial situation and only you can make that decision, or with the assistance of a professional financial adviser.

    Another important question is whether this a DB or DC scheme, also if you change employment, can you bring your employer contributions with you?

    Money invested at 26 is worth roughly twice that invested at 36 (or it will cost you twice as much for the same return). Bearing in mind the depressed state of the investment market I would suggest continuing to pay what you can afford. Are you saving for a house deposit or a car? These could easily take priority over a pension - its down to your personal circumstances and you havent given us enough to go on..


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    #4
    Jugs82
    Closed Accounts Posts: 627 ✭✭✭Jugs82


    Deleted User wrote: »
    If you reduce/stop your contribution, will the employer reduce/stop their contribution?

    They will match my contribution up to a maximum of 4.5%
    Are you saving for a house deposit or a car? These could easily take priority over a pension - its down to your personal circumstances and you havent given us enough to go on..

    Saving a bit each month into a savings account, so reducing or opting out of pension payments would be to have the extra cash when the girlfriend heads back to college in September


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