Pension Advice

trafficlight

Hi,

I am wondering if anyone would have some advice on starting up a pension.

I am 33 and have never had a pension.

The company I work with has a pension scheme with Bank of Ireland and contribute the minimum of 10%.

I realise that it is time to start up a pension but I am unsure what options I should go for, how much I should pay into it on a monthly basis as I don't want to pay in too little that it will be a very poor pension fund at the end of the day or I don't want to pay in too much that I cannot afford.

Any advice would be greatly appreciated.

Thanks

homer911

Most company pension schemes operate on a funding-matching basis. join the company scheme, contribute enough to get the maximum company contribution while making sure you still have access to the funds you need for accommodation, transport etc. Consider adding more to your pension if you can afford it

jonnybravo

I'd suggest a starting point is to put in the minimum amount that maximises the company contribution and go from there. For example if the company matches your contribution up to 10% then I'd put in 10% as a minimum. If the company requires 5% employee contribution to get the 10% employer contribution then your minimum starting point would be 5%. The employer contribution is tax free and the employee contribution gets a tax deduction of 40% (assuming on the higher rate).

Anything on top of the minimum amount would be depending on affordability and other requirements (mortgage, savings, childcare etc.).