Investing for Retirement
Investment Options for Retirement Financial
for retirement requires your regular attention, and review of your pension and
other sources of retirement income.
Retirement Financial Planning
the years 2008 - 2009, falling stock markets and property values seriously
eroded wealth, raising concerns among the millions of baby boomers, who were
well into their middle age, about their individual retirement accounts and
planning for retirement.
Many companies are switching from defined
benefit pension schemes, to defined contribution,
or have closed the defined benefit scheme to new entrants. Most defined benefit
schemes are based on final salary, whereas the pension from a defined
contribution scheme depends on how much is paid into the scheme and the
investment returns achieved. Defined contribution schemes transfer the
investment risk to the employee and require them to take a more active interest
in the pension fund performance.
How safe is your pension?
- Ask questions of your employer and financial advisor.
- Know your scheme and know your rights.
- Pay attention to your financial affairs.
- Take an active interest. If you don’t, why should anyone else?
The main sources of income
in retirement are:
- Pension from employer-AVCs, PRSA, or retirement jobs provide a
second line of defense should your employer scheme run into difficulty.
- Additional Voluntary Contributions (AVCs) to secure additional
- Tax relief is available on contributions.
- Personal Retirement Savings
At retirement the following
pension options may be available:
- Tax free lump sum, plus reduced pension
- Purchase annuity-insurance company provides guaranteed income for
life, on payment of a single premium
- Invest in ARF:
An Approved Retirement Fund is a personal retirement fund where you
can keep your money invested after retirement, as a lump sum.
Investing for retirement
consult your employer/pension provider/financial advisor to discuss the options available and suitable for your particular
Read also Retirement Financial Planning for more information on investing for retirement
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