r/irishpersonalfinance Sep 21 '21

What age are you, and how much is in your pension(s)? Retirement

With pensions in the news, I thought this would be an interesting discussion.

I am 30, and have 1 pension that currently contains €62,399.

I currently contribute 15% and my employer contributes 6%. Come January, I will up my contribution to 20%. I would have 2 pensions, but I merged them as my current one has much lower fees. My pension is 100% in Indexed Global Equity.

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u/Plenty_Vegetable7263 Sep 21 '21

I'm 35. Started contributing to pension at about 30. Fund is currently at 37K (50% World Equity Fund, and 50% in a more conservative mixed fund).

A few years back I was contributing about 10%, but now reduced to only 5% as I'm trying to save for a house deposit, and also I get the max employer match of 5%.

If/when we're able to purchase the house, I'll probably contribute 10% again + 5% from employer.

I'm impressed by the pension pots some of you managed to build over the years, and some of the employer contributions are really generous. In my experience, 3-5% max contribution from employer has been the norm.

Pensions are a great tool to invest long-term as we get employer contribution + money is invested pre-tax. This is a no-brainer. But I also like to diversify and not put it all into one pot.

5

u/0mad Sep 21 '21

Yes, sign me up for one of these 12%-15% matches.

What other pots have you got?

3

u/Plenty_Vegetable7263 Sep 24 '21

I've another pension fund in another country where I previously worked. I don't contribute to it anymore, but it keeps growing each year and does its thing.

I've also invested over the years in individual stocks that I select based on their value/potential. I like the fact that I can decide which companies to buy and own.

Also, ideally I'd like to retire before I'm 65. So I like having more control over where I put my funds and how easily accessible they are. As I said, pension plan is a no brainer as money is invested pre-tax and we receive free money from the employer matching our contributions. But it also has drawbacks in my opinion (little control over the funds once invested, stuck until we're 65, and trust the fund managers won't mess around).

I also received equity in the company I work for which works well as a savings/retirement plan. Bought my apartment, so own "some" property (the bank owns it too 😂). That's about it :-)

2

u/fungie89 Sep 24 '21

You are aware your pension isn't in 'one pot', right?

1

u/Plenty_Vegetable7263 Sep 24 '21

Yes and no. It all depends in what asset your pension is invested it. Some of us here said they've chosen a 100% All World Equity Fund. While this is globally diversified, it is still in one asset class (stocks and equity). Some famous analysts (like Michael Burry) have argued that these passive ETFs could get/be into bubble territory.

Also, the pension plans will kick in at least after we're 65 if I'm not mistaken. If possible I'd like to retire before that, and I don't know if it will be in Ireland or in another country.

And, I wonder if the pensions schemes are 100% insured, if for example the providers would go bust. For example, funds in a bank account in the EU are insured up to 100,000€. But I couldn't find any info about pension funds being insured in case of bust.

So to give me more flexibility and peace of mind, I like to diversify and consider various sources of income for my retirement instead of relying on one source only.

2

u/fungie89 Sep 24 '21

Most private pensions allow you to retire at 50 FYI.