Top Tips - Pension Plans in Ireland

How well have you prepared for your retirement? Are you making the necessary provisions? It can be daunting to find the resources necessary to secure a financially stable retirement, but one thing is for certain, a well-formed plan is essential. Below we address some key concerns relating to the financial planning required for a successful retirement.

1. One of the most important factors for securing a comfortable retirement is a long-term financial strategy, such as the commencement of a pension plan, and the earlier the plan is set in motion, the better. If you have thus far omitted to make any savings for your retirement we recommend, whether you are close to the age of retirement or not, that you begin taking necessary steps immediately.

2. Following on from the above, making contributions to a pension plan is essential, and as such saving towards your retirement should be considered as one of your regular outgoings, alongside rent, utility bills, food and clothes.

3. When determining the amount of capital you wish to have once you retire, ensure that you factor in an emergency fund for financial expenses that are unforeseen, such as those that may occur due to ill health or an accidental lapse in insurance.

4. Make sure that you live within your means, both before you retire and once you are receiving your pension. Never take out unnecessary loans, nor dip in to any savings that you have set aside for your retirement. If needs be, you may have to make changes to your lifestyle to ensure that you do not live beyond your means, such as changing the supermarket at which you shop for groceries.

5. As with any form of investment, make sure that you make regular checks on your pension to ensure that it is working for you. By doing so you will be able to establish whether you are making the correct levels of contributions, whether they need to be modified and in which direction changes need to be made.

6. Make periodic re-assessments of your regular debits and credits and make the necessary adjustments to your pension contributions relative to your change in circumstance. For example, if you receive a pay-rise at work increase your regular contributions by the relative percentage of the raise.

7. A common factor that many people neglect to account for when estimating the amount of capital that they will require once they reach the age of retirement, is the consideration of the income that your spouse or partner will be bringing in, in addition to your own. Many of your household bills will likely be shared between you and your partner, so ensure that you take these into account. You may even find that you are better off than you previously believed yourself to be.

8. Finally, when making any important financial decisions relative to your retirement, make sure that you seek the necessary advice. Discussing any issues you may have, either with an independent financial advisor or a pension provider can be extremely beneficial, because they have the expertise to deal with any queries you may have and a thorough understanding how to proceed.

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.