Yesterday’s Sunday Business Post included a special report on Pensions which is a very worthwhile read.
The good news is we are all living longer. However, if you want to retire before age 68 without suffering a big drop in income, you need a plan.
Here are three reasons to start planning for your retirement today.
- If you are age 55 or under on 1 January 2015, you will be 68 before you are eligible to claim the State Pension (Contributory). That’s potentially a three year gap in retirement income!
- Unless you put a retirement plan in place, your income could drop by nearly 67% when you retire [1]
- A longer life means a longer retirement that you need to fund for[2]
Your retirement plan should be based on the income you want in retirement, the age you would like to retire at and the type of retirement you want.
[1] Sources: Weekly State Pension Contributory 2014, www.welfare.ie. and CSO, Average Weekly Industrial Wage, Earning and Labour Costs, 31 March 2014
[2] Source: CSO, Women and Men in Ireland 2011.
