The Pensions Checklist

Retirement can feel like a long way off and planning for it can seem confusing and time consuming. However in order to be able to meet your needs in retirement and experience the lifestyle that you would like, it is important to plan in advance.

This checklist is designed to help you think about and prepare for an adequate income in your retirement.

Read the questions and then check-out the Next Steps below for further information.

1.  Does your employer have a company pension scheme?

2.  Can you join the scheme?

3.  Do you know what benefits the scheme provides?

4.  Have you heard about Personal Retirement Savings Accounts (PRSAs)?

5.  If you are an employee, do you know that your employer must provide you, by law* with access to at least one Standard PRSA, if

• you have no company pension scheme, or
• you are only included in the scheme for death in service benefits, or
• you are not eligible to join the scheme within 6 months from the date you commenced employment, or
• you do not have access to Additional Voluntary Contributions (AVCs) through your scheme.

 6. If you are unemployed or are a homemaker or carer, do you know you can provide for your pension by using a PRSA?

7.  If you are in a self-employed trade or profession or have earnings from non-pensionable employment, do you know you can provide for your pension by using a PRSA or a Retirement Annuity Contract (RAC)?

8.  Do you know that contributions paid to a pension scheme, PRSA or RAC will benefit from income tax relief at your highest rate of tax, as outlined below:

9.  Have you decided what level of income you will need in retirement?

10. If you are in a pension scheme, or have a PRSA or RAC, are you contributing enough to it in order to provide a realistic replacement income in retirement? Do you regularly enquire as to the performance of your investments?

* Note: Providing access to a PRSA means that your employer is obliged to:

• Enter into a contract with a Personal Retirement Savings Account (PRSA) provider
• Notify all relevant workers that the workers have a right to contribute to a Standard PRSA
• Allow the provider reasonable access to the workers at their work place
• Allow reasonable paid leave of absence to enable the workers to set-up the PRSA subject to work requirements
• Make deductions from payroll on the request of the worker where he/she decides to contribute to a PRSA with the designated provider.

Next Steps

1. Visit the sample Pensions Calculator to work out, as a guide, how much you should be contributing to your pension. Go to the Pension Calculator.

2. The Pensions Board publishes a wide range of very practical information booklets on all aspects of pension related issues. All booklets are available free of charge and can be ordered from the Board at info@pensionsboard.ie. The booklets can be viewed or downloaded from Pension Information Booklets on the Pensions Board website.
3. For any further information on pensions log onto www.pensionsboard.ie

Or call: 01 6131900 or LoCall: 1890 65 65 65

4. Ask your employer about access to a pension today
5. Ask your trade union about pension information
6. Talk to your bank, insurance company, building society or financial advisor.

Remember to regularly check the performance of your pension investments and the expected benefits on retirement.