How do I work out how much I should be saving?
As a general rule of thumb you should be aiming for an income of between 50% and 66% of your final salary. However, everyone’s situation is different and it really depends on the type of lifestyle that you want for yourself in retirement, as well as on your own specific circumstances.
An Advisor in your Bank of Ireland branch can meet with you to discuss your retirement needs and help you put a plan in place designed to achieve your financial goals based on:
- your current age
- when you would like to retire
- the kind of lifestyle you’d like
- what you can afford to save
When should I take out a pension?
It is important to start planning for tomorrow, today. The sooner you start your pension, the longer it has to potentially grow which could make a big difference to the size of your savings at retirement.
Is it too late to start now?
It’s never too late to start saving for your future. The amount of income that you can save into your pension and get tax relief on actually increases as you get older. Depending on your age, you can save up to 40% of your income into your pension and claim back tax relief at your marginal rate. So even if you’re starting your pension late, there’s still time to catch up.
I’m not sure if I can commit to long term savings?
A pension plan is very flexible. You can usually stop and start when you need to, and increase or decrease your contributions at any time.
It is better to start saving into your pension plan now, even if you put in less than you’d like to, or you’re not sure if you’ll be able to maintain the same level of contributions. Remember you can usually change how much you save to suit your changing circumstances.
† The figures are based on level monthly contributions of €250. This illustration assumes an investment return of 5% per annum, a 5% premium charge and 1% annual fund management charge. This rate is for illustration purposes only and is not guaranteed. Actual investment growth will depend on the performance of the underlying investments and may be more or less than illustrated.
Warning: These figures are estimates only. They are not a reliable guide to the future value of your investment.