So I work for an American multinational that has a presence in Ireland.
I'll be there 2 years next month. I work a "junior" job and get paid the average industrial wage.
Yesterday I got my pension statement. This tells me how much a pension I will get when I retire at age 65.
The sobering reality is that I work there for another 35 years until I'm 65 I will receive one of the following 2 options :
1. A pension of 5,600 per annum.
or
2. A lump sum of 15,000 and a pension of 3,900 per annum.
Wow.... that really is a pittance ! I mean after (at age 65) 37 years of service, I would receive a pension of 5,600 per annum.... um... I really feel appreciated - not !!
Now there is the possibility of increasing the pension through paying into an additional policy... which I am doing for the associated tax relief... However under legislation the maximum pension I can receive is based on 40 years service....(I basically "buy" 3 extra years from 37 yrs to 40 yrs)
So if my additional policy is really well funded the company will reduce their pension payment to me to keep the overall pension based on 40 years...
What a disincentive to save for retirement using pensions !!
So... this has reinforced my determination to be gone from this job by the time I'm 35. There are also other aspects to the job that don't sit well with me : the rigidity, the politics, the fact that brown-nosing is almost a requirement, the lack of freedom, the monotony, the lack of appreciation/respect sometimes...
Self-employment really is so much more lucrative financially - with no limit on the amount of pension you can provide for yourself...
Current "career" wake-up call
August 12th, 2009 at 12:59 pm
August 12th, 2009 at 02:48 pm 1250088487
August 12th, 2009 at 03:02 pm 1250089372
August 12th, 2009 at 11:35 pm 1250120129
1. having a low salary.
2. puttiging his own money away into an additional retirement policy.
The company is trying to keep its pension obligations to junior staff at a minimum while maximising its obligations to high-flying executives.... survival of the fittest I guess... in 2009.... how far we have come !! lol
August 13th, 2009 at 04:13 am 1250136801