Pensions

**A face** · 04/02/2007, 11:38 PM

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** · 05/02/2007, 12:08 AM

Wonder will this turn into a civil service debate?

**pete** · 05/02/2007, 12:06 PM

Originally Posted by Dodge

Wonder will this turn into a civil service debate?

Must resist response. Must resist....

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** · 05/02/2007, 6:28 PM

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** · 06/02/2007, 9:23 AM

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.

**pete** · 06/02/2007, 11:49 AM

Originally Posted by 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.

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** · 06/02/2007, 11:54 AM

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

Thats my plan anyway

**Peadar** · 06/02/2007, 11:55 AM

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** · 06/02/2007, 12:02 PM

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** · 06/02/2007, 12:04 PM

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

**paul_oshea** · 06/02/2007, 1:51 PM

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.