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Pension as % of salary

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  • 14-11-2013 11:55am
    #1
    darrenseventwo
    Registered Users Posts: 11 ✭


    Hi,

    I would like to get some advice on my current pension. My statement is currently projecting that my pension as % of my salary is 25%. This is assuming contributions will continue to be paid and will rise by 3%.

    As regards what people would feel is an average / good %, how does 25% fair? Should I be looking at increasing this % by increasing my AVC's?


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    #2
    roro2
    Registered Users Posts: 412 ✭✭roro2


    Well the old rule of thumb was to aim for two-thirds of your final salary as a pension, so you'd be well behind this. This 25% mightn't include the state pension though which is currently about €12k. The key is - would you be happy to live on a pension that's 25% of your current salary? If not, you should increase your contributions and that's what I'd do.

    Important to note that the 25% is calculated using a lot of assumptions so should only be used as a guide.


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