Even in your 50’s, you still have options to secure your retirement.

Category: Dolmen News , Business Insurance
What to do if you're 50 and haven't started a Pension

What to do if you're 50 and haven't started a Pension

If you are in your early 50s, and you’ve been employed, working for yourself, or as a contractor, and you have neglected to set up a pension, don’t panic! Even in your 50’s, you still have options to secure your retirement. Although you may need to take more immediate and proactive steps to ensure a comfortable retirement, the out come you desire is in your hands. Here's what you should consider:
 
Immediate Action: Given your age, it's essential to take action immediately. The sooner you start saving for retirement, the more time your money has to grow. Delaying retirement planning can significantly impact the size of your pension fund. You have heard the saying, “What a difference a day makes”, when it comes to pensions this could not be more relevant. Keep asking yourself, what kind of lifestyle do I want in retirement? Ireland is an expensive country to live in. According to an article published in the Irish Times, eating out in Dublin is more expensive than Paris, London and Rome.
 
Understand Auto-Enrollment: Ireland's auto-enrollment system requires employers to automatically enroll eligible employees in a workplace pension scheme. Irish workers who do not have a pension scheme, earn more than €20,000 per year, and are aged between 23 and 60 will be automatically enrolled into the new system. This will provide a form of income when they retire and they won't have to rely on the state pension alone. Check if your employer is participating in this program. If they are, ensure you are enrolled and contributing to the scheme.
 
Consider Additional Contributions: Auto-enrollment contributions might not be enough to secure a comfortable retirement, especially if you've started late. Consider making additional voluntary contributions to your pension fund. Take advantage of any employer matching contributions, if available. You may also need to consider a private pension to ensure your retirement fund can maintain your current lifestyle.

Seek Professional Advice: Consult with a certified financial advisor or pension specialist who can assess your current financial situation, set retirement goals, and create a tailored plan to achieve them. At Dolmen Insurance we have a number of financial advisors ready to help you. Our team, lead by Áine Derham can help you understand the tax implications of different pension options.

Explore Personal Pensions: If your employer does not offer a pension scheme, or if you're self-employed, you can start a personal pension plan. These plans allow you to make regular contributions, and you may receive tax relief on these contributions, making it a tax-efficient way to save for retirement.3

Consider Catch-Up Contributions: As you're over 50, you're eligible for catch-up contributions in certain pension schemes. This allows you to contribute more than the standard annual limits in the years leading up to retirement.

Assess Your Retirement Goals: Determine your expected retirement age and the lifestyle you want during retirement. This will help you calculate how much you need to save to reach your goals.

Diversify Investments: Be mindful of your investment choices. Consider diversifying your pension investments to spread risk. Consult with a financial advisor to create a diversified portfolio that matches your risk tolerance and retirement goals. Starting a pension when you are young allows you to invest in higher risk options, given that you have significant time to recover, should they fall in value. As you get older, you may want to be more conservative in your approach. Our team can help you understand the risks and benefits associated with investment options.  

Review Your Progress Regularly: Keep a close eye on your pension fund's performance and adjust your contributions and investment strategy as needed. Life circumstances and financial goals may change, so it's essential to stay informed and proactive. At Dolmen Insurance, our team will maintain regular contact with you. Allowing you to check in on your investments and track the growth of your capital.

Maximise Tax Benefits: Take advantage of any available tax benefits related to pension contributions. In Ireland, pension contributions often come with tax relief, which can boost your savings over time. The tax relief on pensions is one of the most beneficial perks you will have access to in your working life. 

At Dolmen Insurance, our approach is always tailored. Financial planning is a personal matter, and it's crucial that your retirement strategy is tailored to your unique situation. We provide access to lump-sum investment and pension solutions. We’ll design a cost-efficient investment strategy to support you in achieving the best possible return for your investments. Research shows the majority of people have no idea how much money they really need for the rest of their life. You may have income, assets and investments, but what does it really all mean? Talk to our team today and get professional, qualified advice.

We advise you decide.