Graduates - Irish Pension Advice

Graduates face a difficult time when leaving university, amongst other things there are worries about embarking on a new career, choosing a place to live and how to re-pay the massive debts accumulated in the name of education. However, there is another issue of equal importance that must be considered and it may seem like a long way off, but saving for retirement should also be high on the list of imperatives concerning the recent graduate. Rather than being largely irrelevant, retirement is after all decades away, the fact remains that to secure a comfortable retirement thorough planning is essential, and the earlier the plan is set in motion, the greater the likelihood of securing the retirement you want. This article discusses some of the issues that graduates should be considering with regards to their retirement.

• Securing a firm financial base is crucial. Most young people are too wrapped up in the joys of being young, partying and experiencing new things, to give much thought to future financial security. However, it is essential that young people develop good saving habits whilst they are young. In terms of creating a reasonable nest-egg to fall back on when life throws up one of its unexpected happenings as well as for use towards your retirement, then you must ensure that you save a reasonable proportion of every pay-packet you receive.

In general, most financial advisors and pension providers will recommend that individuals should save, on average, around 5-10% of their salaries per month. Additionally, if a person begins making such savings early in their career path, then the larger the nest-egg they will be able to create. So, starting pension contributions as soon as a person embarks on their career will set them in good stead for a happy retirement.

• Any work undertaken on behalf of an employer should be tax-registered. Many individuals new to the workforce will happily work in 'off the books' employment, because such earnings are not subject to tax and people may feel that they are doing themselves a favour by taking such action. However, this is not the case and it is strongly advised that you do not do this, not only because if you are caught you will probably face hefty fines, but additionally because you may be jeopardising your State Pension, where eligibility rests upon making the correct PRSI contributions, which are not made if employment is not tax-registered.

•Thoroughly research pension plan and ensure that you understand all the terms and conditions relating to the policy that you opt for.

Whenever a person first enters the workforce, or returns after a period of absence, it may feel overwhelming, this is perfectly normal and we all experience it. For graduates in particular, this stage of their lives is full of important choices that will affect the rest of their lives. 10 hour days are a nightmare once you have been used to rolling in to one afternoon lecture a day!

However, even though this is a daunting time and there are many issues to deal with, it is vitally important that consideration is made and the appropriate steps taken to set you on the road to a comfortable retirement, you will be grateful to your younger-self when the time to retire is upon you.

By keeping the above information in mind, you will be able to make sure that you are taking sound financial decisions towards your future. Research is fundamental and significant time should be taken when choosing your options. Talk to various people, including a financial advisor and your pension provider when making these early-career decisions to ensure that you are taking the appropriate actions towards a financially secure retirement.

This article is based on the author's own observations and research and is not associated with any 3rd party organisations.


Rochelle Martinez, Freelance Web Content Article Writer for three years. Some of her articles are about money management, pensions and investments.