15+ Years Left To Retire? Supercharge Your Pension & Manage It During A Crisis
The COVID-19 crisis has taken everyone by surprise resulting in stock markets being significantly impacted. This is extremely worrying and stressful for all pension investors, both pre-retirement and post-retirement. It is highly recommended that you speak to a pension advisor and review your fund. Only then an appropriate investment strategy can be determined. Market downturns can also be a positive opportunity to enhance your pension investment value.
Approximately 62% of workers in Ireland are members of a Defined Contribution (‘DC’) pension scheme. This is where your contributions are paid into a fund that invests in the stock market. Funds typically achieve investment growth over the long term; however, in the short to medium term, the investment value can rise and fall due to global economic events such as COVID-19. The stock market has performed extremely well over the past 10-12 years whereby investments have achieved higher than average returns.
Here’s our advice for anyone who has 15+ years left to retire:
- You do not need to worry too much.
- Historically, stock markets have recovered well in the years following a market crash.
- If you have surplus funds available, it may be an opportunity to invest further and benefit from the cheaper unit prices in the market.
- Pension contributions attract tax relief of 20% or 40%, subject to Revenue limits, meaning that €100 invested will be a net cost of €80 or €60 depending on your applicable tax rate.
Making premature decisions without knowing all your options can result in further negative impacts to your pension fund value. Expert Pensions will understand your overall circumstances, review your pension fund(s) and outline all appropriate options for your consideration.