It’s important for everyone to have a plan in place so that their standard of living doesn’t fall when they retire. This is as true today in these uncertain financial times as it is when things are going well. While women generally live longer than men, they are less likely to have adequate income in retirement.
Women generally end up with smaller pensions than men
One of the reasons for this is because women often face challenges during their working lives not experienced by men. Their career paths are more likely to alter course to allow for temporary or permanent leave to mind children, take care of loved ones, or even take a career break. While this pattern is changing, with more men taking on the role of carer, the vast majority of women still undertake this role*.
If you take time away from work, this can have a significant impact on your pension savings and ultimately on the type of lifestyle you will be able to afford in retirement.
Things to consider
- Will your employer still contribute to your pension if you are on maternity leave?
- If you take extended leave or reduce your working hours, there could be a knock-on effect of losing out on employer contributions towards your pension.
- If your income is reduced, saving for your retirement may become less of a priority.
- If you take extended leave or reduce your working hours, will you have enough contributions to qualify for the full State Pension (Contributory) when you retire?
- If you have a pension from a previous employer do you know how much it is worth?
- If you are married or have a civil partner, do you know how much income their pension will provide in retirement?
If you don’t have a pension plan
- You should consider starting one now to help ensure that you have a comfortable retirement.
- If there are any gaps in your earnings as a result of taking extended leave or reduced working hours you should factor this into your pension savings.
If you already have a pension plan in place
- You should review it to ensure you’re on track for the retirement you want.
- It’s important to ensure that it factors in the impact that any extended leave or reduced working hours could have on your pension savings, if this applies to you.
If you are approaching retirement
- Find out how much income your pension is likely to provide you with in retirement. If there is a shortfall, you still have time to increase the amount you are saving into your pension.
- Find out if you are eligible for the full State Pension (Contributory) - and at what age it will become payable.
*Source: www.cso.ie
Disclaimer
Life assurance and pensions products are provided by New Ireland Assurance Company plc., trading as Bank of Ireland Life. New Ireland Assurance Company plc., trading as Bank of Ireland Life is regulated by the Central Bank of Ireland.
Advice on Bank of Ireland Life products is provided by Bank of Ireland, trading as Bank of Ireland Insurance & Investments. Bank of Ireland trading as Bank of Ireland Insurance & Investments is regulated by the Central Bank of Ireland.
Bank of Ireland is a tied agent of New Ireland Assurance Company plc trading as Bank of Ireland Life for life assurance and pensions business.
Members of Bank of Ireland Group.
