Yes, you’ve heard all the reasons before of the importance of pension planning from a young age. You know that you now need a sizeable pot of money to see you through your retirement – the state pension hasn’t increased in years (and will it even be there when you get to retirement?) as the government simply cannot afford it, the state retirement age has been pushed out to 68, and on top of this, we’re all living longer!
The government at least are trying to encourage us all to save for our retirement by leaving the generous tax breaks in place. It’s now up to each and every one of us to take ownership of our own retirement plan, if we want to live above subsistence level in retirement.
So, you’ve decided to take the bull by the horns and want to get a pension plan in place. What’s the right plan for you? Here are a few points to consider.
Get independent advice
To get off to the best start, talk to a Financial Broker. Unlike your bank, they offer advice on most of the pension plans available in the Irish market, they won’t force fit you into the only one available to them. Your Financial Broker will find the best plan for your own circumstances. They will also do the thinking for you in relation to the following points below!
What type of pension plan is right for you?
Personal pensions, executive pensions, PRSA’s, small self-administered schemes etc. – pensions are a complex area. It is really important that you find the right type of plan. You want to ensure that you can maximise your tax relief, structure your pension benefits in the optimal fashion for you and minimise the charges. Your Financial Broker will look at your situation and will help you decide what is right for you.
Where should your pension plan be invested?
There is a myriad of investment options out there, all seeking your attention. Your investment choices should reflect your time to retirement and most importantly should reflect your attitude to risk. Are you happy taking on risk, aiming for higher returns over the lifetime of your pension plan while accepting volatile returns while on the journey? Or are you happy with the prospect of lower returns, but in the expectation of a smoother path to retirement? You need to find the right investment solution to meet your needs.
Keep an eye on the charges
The charges that apply to your pension plan reduce the size of your pension pot. Your Financial Broker will help you to find the most appropriate pension plan, with the investment funds that you want while analysing the charges to find the best fit for you.
Then there is the service proposition of providers, online access to information and a host of other factors to consider. There’s one sure way to reduce the headache – go and talk to your Financial Broker.