Pensions - What one is the best?

[A face]

Lads, theres a guy calling round in work soon about us getting pensions, but whats the story with them? Which ones are the best at the moment?

Anyone have one?

[Dodge]

Wonder will this turn into a civil service debate? :D

[pete]

Wonder will this turn into a civil service debate? :D

Must resist response. Must resist.... :eek:

Pensions Pros:
- Tax relief especially if at the top rate as you pay not tax on the money going into the pension.
- Employer contribution. You get to keep this if stay with employer for 2 years. This was changed a few years ago as previously had to stay for 5 years.

Pension Cons:
- Management fees. 0.75-1% of your pot for doing feck all.
- Money locked in for decades. I think used to be able to cash out & pay 10% tax but not certain.

Pension gurus will always say you not paying in enough but thats true of everyone & someone in their 20s only needs very basic one if any as be better off saving for house.

[A face]

Who are the company to take one out with though? Do many posters here have one? Its just that everyone should have one taken out now we're told.

[Kingdom]

Myself and Mrs Kingdom are both Civil Servants so we don't need to take any out. I don't have the foggiest what the pay out will be , but I'm led to believe if I stayed in here (which I will) on the money I'm at ( which I will) then I'm sorted. I leave the ambitious career stuff to her good self so she's sorted too. :D

[pete]

Who are the company to take one out with though? Do many posters here have one? Its just that everyone should have one taken out now we're told.

Is this a company scheme? If so you won't have a choice on the provider but will likely be able to choose the policies. As a general rule the younger you are you pick equity (shares) as even if you have a couple of bad years you have years left to make up for. Older people will keep in bonds as when you close to cashing out a couple of bad years could kill the value without time to make back.

[First]

The trick with pensions is not to bother, then commit suicide on your 65th birthday.

Thats my plan anyway;)

[Peadar]

I've got a company scheme with Irish Life. My company makes a contribution which is a percentage of my salary. It therefore rises as my income rises. I match that percentage. I also make Additional Voluntary Contributions.
The way I see it, if the money is taken out of my pay, before it gets to my bank account, I wont miss it.

Worked with a guy that swore by investing in property as opposed to contributing to a pension as he maintained that you'd be certain to have something at the end of it all. My opinion was that nothing is certain in this world.

[First]

Are you entitled to cash in any money you have built up in a pension fund whenever you want or is it hogtied until you reach pension age. Just wondering how this is handled if a persons circumstances changed.

[Peadar]

You typically can't access it but if you do, you'll get hit hard with tax, as far as I know.

[paul_oshea]

peadar:
Depends on legislation. 2 yrs in Ireland for TV, prior to that return on contributions less tax(20%), its the fund management side of investment banking, hence the longer they have your money to more they can do with it, for themselves and for you.

[First]

Paul O

What does TV stand for

[Peadar]

Try reading this (http://www.ifsra.ie/data/cr_pub_files/Pensions%20guide.pdf) for advice...

[First]

Thanks Peadar