Pension

bilbot79 wrote: »

I think it depends what lens you look through. Are you aiming to survive, or thrive? You're definitely safe if that's the aim

I think.it all relative it's easy to talk. About 1 million + pension funds when you are earnings 100 k+. Butrasgali is on mid level factory income I presume in the 40-50k mark.

As an aside a 7K DB pension will cost 170-200k approximately. To buy if index linked. However people have to love inntge here and now as well and put kids through college.

There are benefits and challenges to retiring pre 60. It will be more so in the future if your children are still college age. Those on higher incomes have more ability to use the tax and pension system to there advantage. Often those on higher incomes will see employers more than matching funds.

Remember people have to live in the here and now as well.

Another couple of factor if you are married or have a partner they may not be able to afford to retire at this stage especially if they are a few years younger than you.

As well even now 60 years are much more active than 30 years ago in 20-30 time a 60 year old will be maybe the equivalent of a 50 year old now. The challenge of retiring at 60 is not just having a pension pot big enough but having enough to fullfil that life.

I actually think that the structure of retirement will change over the next 20-30 years. I believe that as the population ages companies will be.much more open to allowing employees reduced working weeks and/or greater time off. You already see it in nursing where people are retiring and working 15-30 hours s week to top up there pension

McGaggs wrote: »

I would be a bit careful on this bit. Any DB scheme statements I've seen give the pension amount assuming no lump sum; taking one would reduce the pension.

DB statement generally give a total pension value now. However most have a pension and lump sums value in the total sum

Just by coincidence the company I work have come out and said they are interested and are looking into an option of buying out the people who have a dB pension..I looked at the dB figure which is 7990euro per year when I retire..I can't see an overall total figure that the dB is worth..is there some sort of set calculation to make this up from the figure above..I have just over 20 years in the old dB scheme..thanks again

butrasgali wrote: »

Just by coincidence the company I work in have come out and said they are interested and are looking into an option of buying out the people who have a dB pension..I looked at the dB figure which is 7990euro per year when I retire..I can't see an overall total figure that the dB is worth..is there some sort of set calculation to make this up from the figure above..I have just over 20 years in the old dB scheme..thanks again

So you have 8k if an annuity. I presume you have to be 65 and retired before you can draw it down. As well is there a survivor element to it(50% widows) I be very slow letting them buy it out especially if you are in very good health( not a smoker, not seriously over weight and exercise regularly). People that live to there 60's on average will live to 84 years if age.


There are different permutations depending on how long you were to retirement, if there is a lump sum separate to the DB element. Is it index linked. As well is there survivor and your health.

You want a fund of 150-220k by 65 to replace it

I don't believe their is a lump sum.I think the company will only offer 50 percent of what thevalue of the dB is.. imo.lots I feel will take it,especially shift workers with the attitude that they won't live much longer after retirement..

Had a pension question that this thread might be able to help with.

I haven't set one up yet and I really probably should. I'm in the 20% tax relief bracket and am self employed.

For ease of making sure I have enough to pay the tax man every month I just transfer 51% of anything earned to a separate savings account. Can I just pay a lump sum into a pension every year tax free? Example below.

• I earn 100,000 euro in a year
• I put 51% into a savings account to pay the tax year end - 51,000 euro
• My tax relief between 30-39 is 20%
• If I earn 100,000 euro the tax relief would be 20,000 euro

Does this mean at the end of the year I could pay 20,000 euro into a pension and only pay the tax man 31,000 from the 51,000 I've saved?

Gotcha! I knew my way was too good to be true.

I guess it's still worth doing as much as I can then.

Nobody in Ireland has an effective tax rate of 51%, so there is no need to put 51k of your 100k earnings aside.

On 100k earnings, I'd say the effective tax rate is maybe 36-40% approx.

51% before tax credits, pension contributions, salary sacrifice (if you have it) and whatever other tax benefits you can find relevant to your profession

What annual pension would you get if you stayed in the dB scheme, and is the scheme fully funded?

Thanks for that info..yes 8k a year is the dB amount per year at 65..they want to wind-up the db so the offer they say is a good one(87000saved in it and the offer of 195k)

..since the last quote ..my dc had gone to 160k at the moment and without the dB lumps,it's forecasts it to be at 375k..at 65..would ye recommend me to put it all in the dc..I do hope when the time come to take a 25 %tax free lump sum..not sure if that is at 55..

Just an update on my situation..I jave til Dec 10th to make a decision to change my dB to the dc..I'm going for it after getting alot of advise..basically I will now have 350k in my dc and all going well I could have a big pension at 60/61.

It's close to a multiple of 19 times the amount,..the total amount if and when I change to the dc will be 355k..which at 51 is not bad I feel..

Well the deed is done,have just popped my dB into the dc pension,now hopefully things will stay on the positive and climb to a nice pot by the time I'm 60 or 61..regards b