Advertisement
If you have a new account but are having problems posting or verifying your account, please email us on hello@boards.ie for help. Thanks :)
Hello all! Please ensure that you are posting a new thread or question in the appropriate forum. The Feedback forum is overwhelmed with questions that are having to be moved elsewhere. If you need help to verify your account contact hello@boards.ie

Am I right to be worried about my pension.

Options
  • 07-11-2014 1:12pm
    #1
    spaceHopper
    Registered Users Posts: 3,991 ✭✭✭


    Folks,
    Am I right to be worried about my pension.
    The background it’s a company pension, they will match my contribution up to 5% it’s with BOI

    However as I was young free and single at the time it was setup a made AVC up to 7.5% so a total of 17.5% of my income was going into the fund
    I’m married now and we have twins under 2 and the USC to that and I’m broke so I cut the AVC to 2.5% now 12.5% of my income is going into the fund.

    It was setup in 1999, in 2003 they (the pension provider) switched it to a new “online” fund and closed the old one, I thinks this was to hide losses and wipe the slate clean.

    My last statement says that in total I’ve paid 108K into the fund, this is made up of the transfer valued form the first fund (which lost money) and regular payments since then. In the last two years there was some growth and it now stands at 144K

    Bearing in mind that this fund ran through the doc boom, the crash to followed and the property boom and crash. Also keeping in mind that the stock markets have recoverted.

    To me in look like the “magic of compound” growth is not happening.


Comments

  • Options
    #2
    coylemj
    Registered Users Posts: 25,437 ✭✭✭✭coylemj


    You save a heap of PAYE and PRSI on those contributions so if your gross contributions were 108K, that probably cost you a net 60K or so (less if you always pay PAYE at the top rate) and is now worth 144K which represents a net gain of 140%.


  • Options
    #3
    spaceHopper
    Registered Users Posts: 3,991 ✭✭✭spaceHopper


    coylemj wrote: »
    You save a heap of PAYE and PRSI on those contributions so if your gross contributions were 108K, that probably cost you a net 60K or so (less if you always pay PAYE at the top rate) and is now worth 144K which represents a net gain of 140%.

    You don't save much as you will be taxed on the income off the pension besides all pension providers have the same arrangement with the tax.

    It's case of are this crowd doing a good or bad job? Will there be enough in 24 years for me to retire on?


  • Options
    #4
    tenifan
    Closed Accounts Posts: 523 ✭✭✭tenifan


    You should get a statement of reasonable projection every 6 months from your pension provider.
    As for whether it's enough to retire on, eh, probably. Who can tell? It mainly depends on your lifestyle, along with a lot of factors outside your control regarding interest rates, market cycles, government policy, etc.


  • Options
    #5
    ANXIOUS
    Registered Users Posts: 3,095 ✭✭✭ANXIOUS


    tenifan wrote: »
    You should get a statement of reasonable projection every 6 months from your pension provider.
    As for whether it's enough to retire on, eh, probably. Who can tell? It mainly depends on your lifestyle, along with a lot of factors outside your control regarding interest rates, market cycles, government policy, etc.

    You aren't entitled to get a sorp every 6 months. OP what is your salary?


Advertisement