Why do you need a Pension?
askpaul explains why you need a pension:
So, you might be wondering – why do I need a pension? I’m going to try and explain that to you very briefly. I’m also going to have supporting videos and content below that will explain different parts of what I’m about to talk about.
The first thing I want to say is affordability and income stream is why you really need a pension. When people talk about pensions, they talk about pension savings accounts. We like to call it retirement planning because sometimes it doesn’t always have to be a pension, it may take in a number of different assets by the time you get to retirement or by the time you stop working.
The new retirement age in Ireland is going to be 68 years of age very soon, and the current state pension is just over €1,050 per month, which is about €12,600 per year. If you’re currently working on an income and you have more than that coming in, when you stop working, you’re going to need to have money somewhere to help supplement your state pension and what you’re required to live on. If you’re lucky and you don’t really need much income, you don’t have much expenditure and your mortgage is going to be paid off by the time you get to 68 years of age, you don’t need to do anything, you’re okay. If you’re going to be able to live on €1,050 per month, you are sorted. You don’t need anything really. So, just let that sink in.
Now, if you are somebody that does need more than €1,050 per month and plan to have some type of a good time in retirement, plan to travel a bit, plan not to be living week to week and scrimping to pay your bills and get your groceries in, you need to plan. The obvious thing to do is to set up a pension account in my opinion, for a number of reasons, which are the videos below.
The point of this video is if you can’t live on €1,050 per month, you need to sort something out for when you get to retirement age.
Check out the videos below where I go through in detail why I think pensions make sense.
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