In this context, putting money into a personal pension plan can seem like a lower priority. In fact, only about 50% of working people in Ireland are currently making provisions for their retirement. So, who’s right in this debate: those prioritising their future or those who are not?

Why Financial Brokers Emphasise Pension Planning

Any Financial Broker you consult will always highlight the importance of retirement planning. They understand the critical role it plays and have witnessed the positive outcomes for those who plan well versus the negative consequences for those who don’t. So, why is pension planning so crucial?

We’re Living Longer

While this is undoubtedly a positive development, it presents the challenge of needing sufficient financial resources to support us through many years of retirement. In Ireland, men are now living to an average age of 78 and women to 83. According to geneticist Aubrey de Grey from Cambridge University, the first person likely to live to 150 years old has already been born. Imagine working for 40 to 50 years and then needing to be financially secure for another 80 years!

Given the high cost of long-term care for the elderly, having a well-funded pension plan is essential for maintaining your independence in later life and avoiding being a financial burden on your family.

Don’t Rely Solely on the State Pension

Many believe they’ll be “fine” with the state pension, but this is a risky assumption. The current old age pension in Ireland is €277.30 per week for a single person on a full contributory state pension, and just under double that for a couple. These amounts have not increased significantly in years and are not even adjusted for inflation. Additionally, the age at which you can start claiming your pension is 66 currently.

Take Charge of Your Future

Fortunately, the government still offers attractive tax breaks for pension contributions to encourage people to plan for their retirement. Starting your own pension plan remains one of the most effective ways to ensure financial stability in your later years. A Financial Broker can help you find the best plan tailored to your needs.

So, don’t let the immediate demands of today overshadow your long-term financial security. Speak with a Financial Broker about setting up a pension plan and take control of your future.