What happens to my pension contributions?
The pension fund manager invests your contributions (and any made by your employer) in one or more pension funds. These funds are used to buy and sell assets, such as shares, property, bonds and cash (deposits). There are many types of pension funds. Each invests in a different mix of these assets.
When should I start saving for retirement?
The earlier you start the better. You will have more time to make contributions and more time for your fund to grow in value. The older you start the less time you have to build up your fund so the sooner the better. You will have to pay much higher monthly contributions to give you the same pension you would have had if you started saving in your 20s or 30s. If you are older when starting a pension, don’t let this put you off, as it is better to have a smaller fund than no fund at all! Remember, as you get older you can get tax relief on more of your income and you may be able to make accelerated contributions.
Make better plans for a rewarding retirement
Planning for retirement should not be left to the last minute, but often is. International research has shown that the more thought and preparation given to retirement planning the more rewarding the experience for the individual and their family. So why do you need to plan:
To make sure you get the most out of all your leisure opportunities once you retire
To understand all the financial planning issues that will impact your retirement
To understand what your social welfare entitlements are in your retirement
To get your personal affairs in order so you can relax