Archive for the 'Retirement' Category

Time to increase the Standard Fund threshold

You used to be able to have as big a pension pot as you wanted/ could afford. In 2005, a cap of €5 million was introduced. It was increased to €5,418,085 in 2008 before being reduced to €2.3 million in 2010 and then down to €2 million in 2014. It hasn’t changed since. In December […]

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Pensions are expensive - don't leave it too late

Pensions are expensive – don’t leave it too late

Everyone knows that the earlier you start your pension, the better off you will be in the end. Afterall, some of your money will be invested for 40 years. I have come across a number of cases recently where people are nearing retirement and are drastically trying to play catch up. These are people who […]

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Preparing for retirement

Preparing for retirement

Retiring is one of the biggest events in your life. You have been working for almost all of your adult life. It is an area where you have a considerable amount of expertise, you are respected for what you do, it takes up more time than anything else you do, it is the source of […]

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If you don't have anything to occupy your time in retirement, volunteer

If you don’t have anything to occupy your time in retirement, volunteer

Retiring is a huge change for people, not just financially but emotionally. For decades, you have gotten up every morning with somewhere to go. You met and worked with people who have some of the same interests as you, often spending more time with work colleagues than your own family. Then it ends abruptly. Lots […]

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Should you divest your assets when you get old?

Should you divest your assets when you get old?

Years ago, anyone who had a work pension had a had a defined benefit pension. They didn’t have to worry about investment risk. Then came the defined contribution pension. You either invested in the With Profits fund or a Managed fund. At retirement, you purchased an annuity and that was the end of any concern […]

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Report of the Commission on Taxation and Welfare - Pensions

Report of the Commission on Taxation and Welfare – Pensions

The Report of the Commission on Taxation and Welfare was published last week. At 547 pages, this is a lengthy document and there is a huge amount of recommendations in it. As there is enough just on pensions, that is what I am going to concentrate on now. I will come back to some of […]

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Fear of dying too young

Fear of dying too young

Even before annuity rates dropped to the low rates that they are today, annuities had very much given way to the ARF as the retirement option of choice. Even though they were giving up guarantees and assuming all the investment risk, retirees preferred to have control of their own retirement fund. One of the biggest […]

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Variable income in retirement

Ever go to conference? Ever notice that people return to the same seat after breaks. If it is two day conference, everyone will be sitting in the seats they had the day before.  We are creatures of habit and we like routine. One certainty we love the most is getting that pay cheque every month. […]

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Sequence Risk

When we think about investment returns, we think of long term averages. It doesn’t work like that though with returns varying from year to year. If you are assuming a 6% annualised return, there will be years of double digit returns but also years of negative returns. This is fine when contributing to your pension. […]

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Making your retirement income last

There is a vulnerability to retiring and not earning an income anymore. Instead of money coming in every month and your savings increasing, you are spending that money that you have saved over the decades. And not knowing how long we will live for means we don’t know how long our savings have to last […]

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