I recently received a letter from my employer informing me that my pension will be cut by 50% as of next month. I’m not alone, either: around 30% of people in Ireland are facing cuts to their pensions, according to official figures from the Department of Social Protection. However, there are ways to avoid this fate if you know what’s happening and how much money you’ll need for retirement.
How much can I expect to receive?
Our pension calculator will help you estimate the amount of money you need to contribute to your pension, based on your age and salary, to ensure you have your desired pension fund in retirement.
If you want to know how much money you can expect to receive from your pension fund, it’s important to know your age and the number of years since you were born.
What is the average pension rate in Ireland?
The average pension rate in Ireland is €18,000. This figure has increased by €1,000 over the last two years and will continue to increase over time as the pension funds grow.
The average amount of money that you receive from your pension fund is based on how much you’ve contributed and how long you’ve worked for your employer. If you retire at age 65, then this number becomes your new salary when calculating how much money will be paid out as a pension each month or year after retirement (this depends on whether it’s monthly or yearly).
How will my pension be calculated?
- Your pension will be based on your average weekly earnings.
- Your pension will be based on how long you worked.
- Your pension will be based on how much you paid in and when it was taken out, as well as other factors such as the type of job that you had and whether there were any conditions attached to it. For example: if you have been working since age 16 but did not pay into the system until after 18 years of age (this is known as deferred entry), then this could affect your future entitlement to state benefits such as a State Pension (this would apply even if no contributions were made during those 18 years).
What are my other options for getting a pension?
You may also be able to take a lump sum payment from your pension fund. This is known as a pension lump sum, and it works in the same way as an annuity.
If you want more information about how this works, read our guide on how to calculate my pension fund here.
You might also be able to buy out some or all of your existing benefits by drawing down on them over time through drawdown. For example, if you’ve taken a lifetime allowance payment and then want to use what’s left of it as cash – rather than continuing paying into an annuity – then there are two options available: drawdown or transfer (see below).
Why isn’t there more being done to help pensioners in Ireland?
We are a vulnerable group of people. We are not getting the help we need, and neither are our pensions.
We deserve better than this!
The best way to have a comfortable retirement is to plan ahead and make sure you have enough money saved.
- How much you need to save depends on your age, lifestyle and income.
- The amount of money you will need for retirement depends on the amount of time that is left before retirement and how much money you have saved.
- Your health and tax situation will also determine how much money you should be saving for a comfortable retirement.
Although it may seem daunting at first, investing in your future and retirement planning is the best way to ensure that you have the funds to live comfortably for years to come.