When you hear a question about getting your financial future sorted, does it make you a little bit uneasy? Are you the type of person who keeps putting off the thought of pensions and future financial security because you feel it’s a) too complicated b) you’re too young to think about getting older and needing a pension c) with the cost of school just done, and Christmas on the horizon, it’s the LAST thing you can think about now.
But ... it’s actually not that complicated, it doesn’t matter what age you are and you might just be surprised at how much you’ll need.
And, there’s help at hand. AIB want to help you with the advice you need to demystify retirement planning and inspire you to take positive steps in your financial journey.
It's completely understandable that many of us put retirement planning on the long finger as we tend to believe it’s not high-urgency especially in our younger years. But life comes at you faster than you think, and it doesn’t take much to fall behind.
So what do I need to do about a pension?
You should be putting a little aside today to help you live an active and enjoyable life when you decide to stop working. If you don’t know what that looks like, what you can afford and what the best options are available to you, you can talk to AIB advisors who can guide you through everything.
Making sure you have a retirement fund is doing your best to ensure that when your income stops at retirement, that the must haves in your life financially can continue, and the earlier you plan for this the better.
How much do I need to save?
Saving for your retirement is down to you, the more you put in means the more you get out of it. To encourage you to save for you future, you get a tax relief - each contribution you make to a pension plan receives tax relief based on the rate of income tax you pay. Money saved into your pension plan is invested with the aim of growing over time
How much will I need when I retire?
In the same way everybody’s lifestyle is different, everybody’s affordability to pay a pension contribution is different. A contribution to a retirement plan should always be affordable and maintainable and one which does not distract from your day to day living. If you’re not sure, the financial advisors at AIB can help you get what’s right for you.
When is too late to start paying into a pension?
It's never too soon or too late to start planning your pension – obviously starting later than normal means you just could have to put more in yourself and miss out on some of the government and corporate incentives. But, the important thing is to get started.
How do I know what I should be investing in?
Don’t get put off by this one – the financial advisors at AIB will guide you through what you need to know and will answer any questions you have. They’ll help you understand why you might invest in one fund rather than another, which will all depend on what you can afford, and what kind of risk tolerance you have. What’s important here is that you ask if you don’t understand, they are there to help.
When you have your retirement plan in place, make sure you take the time, at least once a year to review it. You want to make sure it will still deliver your financial hopes for the future and to ensure it fits your financial situation presently.
If you’re not yet sorted, now’s the time. You can find lots of information here – why not take the quiz to find out if you’re FutureSorted!