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Pension Bizness

March 4th, 2010 at 06:04 am

Retirement Ramblings:

As things stand I'm likely going to have 3 sources of Retirement Income:

1. The Irish State Pension. Today this is roughly 200 a week.

2. My Employer Pension. This is dependent on Length of Service and Final Salary. And of course on the Scheme still be solvent in 35 years (which is not guaranteed). As I don't intend to spend a long time in my current job, I don't expect a lot from this pension if anything - maybe 20 euro a week at tops.

3. My Personal Pension/s. This is basically the money I put away out of my take-home pay towards Retirement. This will hopefully be my biggest Retirement Asset. Who knows what it will be worth in 35 years time (will depend on how much I earn in the future and investment growth) but I'm hoping a nice nest egg.

I worked in Britain for 7 months a few years ago and I recently received a letter from the British Government saying I'm entitled to 4/30ths of the British State Pension. And I can pay money each year for 26 more years to get the full pension. In today's money I'll have to pay roughly 400 pounds a year for 26 years in order to get say 90 pound a week pension on Retirement.

So 400 X 26 = 10400 in order to receive an annual pension of 90 x 52 = 4600. Pretty Sweet ! An awesome investment !

So I'm planning to make the additional payments all going well ! I hope the British Government don't change their rules on non-resident non-British people claiming British pensions - seems VERY generous to me ! (If I am understanding it correctly)

2 Responses to “Pension Bizness”

  1. Jerry Says:

    Wow! Only seven months in Britain and you are eligible for that pension? That is terrific... leads me to want to consider taking a part time job in England, perhaps! With a pension in the UK it is really nice, because the health insurance is covered, and that is a huge concern for retiring Americans. It certainly was the one thing that caused my Mom to retire a couple of years early, because if she stayed on they were going to take away her health benefits for retirement.
    Jerry

  2. Apprentice Bliss Hunter Says:

    Yes... thankfully, we don't really stress about health insurance on this side of the pond...

    We're all entitled to free (if slow) healthcare - which is paid for out of our taxes - and if we want a faster and more comfortable service, we buy health insurance.

    Most working people have some form of health insurance... cos Health is one area where you want the best service.

    Our premiums are a fraction of the premiums in the US though..

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