Work until 70 - Poll added


#561

Now you’ll work till you’re 70! Young face longer wait for pension and even those in their forties will be forced to postpone retirement - -> dailymail.co.uk/news/article … nsion.html


#562

with life expectancy increasing we will be all living longer I guess, it would bother me to work up to 70 if I live to 90 lets say just not in I.T as i’m going to incredibly contakerious by then…

the big issue is all the current benefits and subsequent costs the current pensioners cost, this wont be anyway sustainable with the demographic changes coming down the line.


#563

When all the current politicians will be long dead hence the urgency in addressing the issue.


#564

rte.ie/news/business/2015/10 … bill-2016/

The Finance Bill 2016 gives effect to taxation measures announced in the Budget earlier this month and also includes measures not announced on Budget Day.

These measures include an exemption for employees from USC on employer contributions to a personal retirement savings account (PRSA).

Might save you 7% tax.


#565

How many more reports are needed before Irish politicians get off their collective well fattened ani and do something about this?

Probable answer = loads.

State pension system unsustainable, report warns

irishtimes.com/business/econ … -1.2470395


#566

Forget the government …adults should take responsibility …if you don’t have DB scheme (rare these days) then you need to start planning …in your late 30’s you need to be throwing at least a grand a month (with the relief) …to have anything worth while …if you can’t find that coz you paying for the gaff …then your screwed!! …a pension, a lifestyle that makes you happy, raising kids etc …then work out your mortgage repayments and buy a house …rather than “the house at any cost” …you house is not your pension …if you relying on the state or an inheritance that’s just sad.

I’ve nothing to do with pension industry but pensions aren’t just about the stock market…hence the word planning.


#567

That’s all good and well but unfortunately most Irish adults have an illiterate approach to financial planning and long term outcomes/consequences when it comes to financial decisions.


#568

Furthermore - the government policy right now is that they will continue to provide the state pension. They should either have a plan for how that’s going to happen or else state straight up that it isn’t going to happen.

Or they could do the usual thing and refuse to address anything that might cost them votes, even if it’s ultimately going to result in either horrific old age poverty for people in 40 or 50 years, or else an insane tax burden on everyone else.


#569

Cue refusal to address anything that might cost them votes, even if it’s ultimately going to result in either horrific old age poverty for people in 40 or 50 years, or else an insane tax burden on everyone else.


#570

Agreed …but we’re big boys now …we saw recently (2008-09) financial decisions come with consequences …the majority will sleep walk into this and start moaning when the time comes and blaming everyone else…my view is there will be no state pension or a pittance when my time comes …the state pension is now in the form of relief.


#571

Problem is that what’ll happen is that those who have the foresight to provide for their own retirement (I do and so do you presumably from points above) will prob end up being taxed heavily in retirement to bail out the majority who will start moaning when the time comes and blaming everyone else. That’s why I’d like to see the government get off their fat arses and do something about it now.


#572

Exactly NE it’s nowhere near as simple as EuroTom makes out.

  • What will the tax rate be on exit?
  • Will a TFLS still be an option?
  • What will retirement age be then?
  • What will the annuity rate be?
  • Will there be more pension levies or similar?

Personally i think I’d prefer to live in a nicer house in a nicer area for the next 30+years enjoying same with my family given all the above issues.

I doubt I’ll regret that too much. I may regret putting €1k pm into a pension, especially if I bite the dirt early.

I do have a pension and do advocate making provisions but I’d be much more in favour of backloading it after mortgage paid off (early) and more certainty as pension age draws closer.


#573

Given that you’ll only get relief on contributions up to 20% of your salary at that age, this does require you to have an income of €60K p.a. Otherwise, you might as well invest the balance in a separate fund to spread the risk, or else use it to pay down your mortgage faster, since it’s going to be coming out of net income.


#574

Ever since the government dipped right into the pension pot I’ve been building and took their few percent I’m far more skeptical about putting in AVCs or max contributions. It was one of the unfairest cash raising exercises, short sighted and because there was no uproar I’d expect to see it happen at some stage again before I retire. So as above I might kick it early so I’ll put in some but not as much as I could.


#575

Of course it’s nowhere as simple as I’m making out …I’m simply making the point …it comes down to personal responsibility …I have a DB scheme and I still spend a portion of time (usually around tax return) reviewing my DC

as far as lifestyle over pension …yup im lucky to enjoy both …and I have DB and DC …but me (and you) aside people are living longer …they should not expect to “live it up” hand to mouth and then have the same hand out to the government come retirement …its a balancing act.

As for croking it early …I’m on track for early retirement (DB,DC,Investments) in case I croke it early…with a list of lifestyle stuff I wanna do in early retirement as long as your arm.
No single house and a state pension is going to do that.

…ps. I like conflicting views so I can learn more


#576

Yup …I stressed the word planning in my posts …its case-case and personal responsibility …I have a DB and DC scheme and spend some time every year (usually around Tax return time) …reviewing this stuff.

My main point is …you should not expect the government to provide for your retirement.


#577

for sure …but I’d rather have something to tax than have my hand out for the dregs …bring on a structured debate here lads …I like learning from different views


#578

Great to have a DB scheme - remember though last one out is a rotten egg. How well is it funded? What’s the minimum funding standard (MFS) % at present? Any section 50 cuts so far? Is there significant bonds held matching assets to liabilities?

A DB aside one of the major issues for me is the increasing retirement age - unless you’ve a jumbo pot it’s very hard to retire early and have sufficient income.

So even though people are living longer they are retiring later so you’ve how many years on average to enjoy that pension - 10 if you’re lucky (68 to 78)?

It’s definitely a massive balancing act between now and the future, but I’d certain side more with now given all the unknowns. At an older age it’s easier to cut back outgoings, there is the option of downsizing from house to apartment.

The inaccessability of a pension pot for 30+ years is also a major issue. With cash/investments even a house with decent equity you’ve options if worst comes to worst.


#579

Yup …I sit down every year and plan …its a half day in late Oct I take nothing for granted …its all reviewed …property & equity prices …up/down don’t care …I’m all low risk because I don’t have to take on med-high risk to achieve my goal.

Careful on downsizing …its not straight forward, currently I know of a couple who are stuck in a 3bed old Semi …the 2 bed new build nearby is nearly the same price …apartments not suitable…charges, stairs, no garden etc etc…its easier if you have a big pile of bricks for a gaff.

A new shiny house purchased in your 30’s in 2015 is an old house when your 67yo …who you going to sell it to and for what price? will they get credit to do it up? what are your options when you do sell? …sure its yours and its worth some money …its just not very flexible.


#580

Totally agree, it’s not flexible at all and there is no certainty in it (but what is there?) but a minimum you’ll have shelter and the benefit of it for the 30years+more.

No point flogging yourself, having a large pension and kicking the bucket or ill health so that you can’t enjoy it - what was all that saving for?. Anyway as we’ve discussed it’s not mutually exclusive and the issue is balance.

Still makes sense to me to get a house paid asap, then use the mortgage payment + whatever paying previously into pension and catch up. The main thing is you’re missing out on returns in the interim but sure so many are in cash or other super low risk/returning investments.

The massive risk is tax relief is restricted to a lower % but if it comes to that you’ve got to think that they’ll levy/raid pensions pots long before that anyway. The plus being you’ve more certainty as your closer to retirement and have access to the cash in the interim period.

Of course matching employer contributions make the pension option far more favourable.