Engage with your future – decide and plan for the lifestyle you want in retirement and work out how to save for it. The average person retiring today has a life expectancy of 20-23 years – that’s a long time in retirement. The Pensions Calculator can help you work out the figures.- Understand – what type of pension are you contributing to if you have one? Is it an occupational/company pension scheme (either defined benefit or defined contribution), or a personal pension (a Personal Retirement Savings Account or Retirement Annuity Contract)? To find out more, talk to your work colleagues, employer, trustees, pension provider, financial advisor, family, and friends. Visit the ‘Understanding your pension’ section to get more information.
- Review – look at the adequacy of your pension contributions regularly. Check if you are contributing enough to have the income you want in retirement. Once again The Pensions Calculator can help you work out the figures.
- Keep an up-to-date pensions file – most pension arrangements are obliged to keep you up to date on your pension scheme. Start a pension folder and, after having read your annual pension benefit statement and annual report, file them away.
- Information – if you don’t receive the relevant information on your pension scheme or personal pension or where you do receive the information but don’t understand it, contact those looking after your pension such as the trustees, pension provider, or financial advisor and request the information be provided.
- Ask questions – you should ask that your pension information be explained in plain language and keep asking until you understand the information provided.
- Charges – you should be aware of the charges against your pension fund and have them explained to you by the trustees of your pension scheme or your pension provider.
- Investment risk – it is important to understand how your pension savings are being invested, the type of strategy, and the level of risk involved.
- Tax relief – the Government supports you to save for your retirement by allowing tax relief on pension contributions at your highest rate of tax. Make sure you understand the tax relief benefits and check that you’re receiving your full entitlement.
- Approaching retirement – it is especially important to review any investment decision taken in the years running up to retirement. On retirement, you may receive a number of different choices. This is something you should research well in advance. You should speak to your trustees, employer, colleagues, or financial advisor.
Follow the link to view The Pensions Authority’s most recent Annual Report and Accounts 2023 and the accompanying statement from the Pensions Regulator, Brendan Kennedy.
Visit www.pensionsauthority.ie for more information.
