Planning to Make Your Pension Last

Planning to Make Your Pension Last

Nobody knows how long they are going to live. So asking yourself how much money you will need from your pension for the rest of your life is like asking how long is a piece of string! The truth is that the majority of us actually underestimate how long we are going to live.

In the period 2010-2012, life expectancy at birth was 78.4 years for males and 82.8 years for females. In 2011, in Ireland, a 65 year old male could expect to live another 17.7 years, which is an increase 0f 1.1 years since 2006.

A 65 year old female could expect to live another 20.6 years, an increase of 0.8 years over the same period. (CSO statistical release, July 8th 2015).

We have listed some key points to consider about your retirement income. This should be done once you have decided on your retirement date, ideally 6 months before.

Ideas for your tax free lump sum pension:

  1. If you have a mortgage, aim to have this paid off. Set up a meeting with your mortgage broker or provider for advice on how to do this.
  2. Review all hire purchase agreements, credit cards or any other credit that you have. See if you can consolidate these debts and have one payment to focus on each month. Some credit facilities have higher interest rates than others so focus on amalgamating payment under a low interest rate.
  3. Major repairs on your home should be done. Review having extra insulation in your home to cut down on heating costs.
  4. If you have a partner/spouse ensure that you both are on the same page when it come to a budget and stick to it.

Obviously life can throw all sorts at us. Even if you follow all the advice given here, unforeseen circumstances can arise which may lead to there being an unexpected dent in your cash flow. Some we can control some we can’t but here are some examples of what to be aware of:

  1. Inflation leading to higher living costs.
  2. Lack of advance preparation. Fail to prepare; prepare to fail. See our previous article to get some ideas on planning.
  3. Having to support children or grandchildren. This can happen due to children staying at home longer or if they are unable to secure a job. A breakdown in your child’s relationship with their spouse or partner may result in them, along with their child/children coming to stay for a while which will of course result in added expenses.
  4. Medical Costs. These obviously increase as we get older. Going to the Doctor more and also there may be an increase in medication to take.

We here at Pension Options can advise you on any of these matters.

About the author


Stuart editor

Stuart Mc Cormack has 19 years’ experience in the Financial Services industry. In 2015 Stuart became the No1. Agency with Irish Life (155 agencies nationally). Stuart has worked with Irish Life & Canada Life as a Senior Financial Advisor for over 7 years. Previous to this Stuart was the Managing Director of French Property International. French Property International is a French property investments company which specialises in wrapping French property into self-administered pensions.

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