Case study Adding to Pension

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dodo

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What would you do with Pension contributions?

Age 52,Single,
Pension fund 170K(low for my age)I give max 7% & Job add 8%.Bluechip Company
Mortgage Free
Salary 90K + bonuses 10% Stocks 15K annually .Disposal monthly income 2.5K
Savings 200K
Stocks 100K
 
You've plenty of savings so I would recommend you max out your pension contributions up to the tax relieved max including for last year (2023)
 
You could (and should) be contributing 30% of your gross salary to your pension for 2023 and going forward, regardless of your employer’s contribution.

That limit rises to 35% in the year you turn 55.
 
dodo said:
What would you do with Pension contributions?

Age 52,Single,
Pension fund 170K(low for my age)I give max 7% & Job add 8%.Bluechip Company
Mortgage Free
Salary 90K + bonuses 10% Stocks 15K annually .Disposal monthly income 2.5K
Savings 200K
Stocks 100K
Click to expand...
The company pension contribution is quite poor so you definitely should be putting much more into it. 7% is very little.

You should also sell the company shares as soon as they vest. As well as a concentration of investment risk, you also have increased personal risk due to both your income and investment relying on the performance of one company.
 
I agree with Flybytheseat, Sarenco and Fortune.

Max out your pension contributions via payroll for 2024.

I’d also top last year’s up to 30% and claim the relief through a 2023 tax return.

And I’d review the investment strategy to see whether it’s appropriate.

I’d also trim my savings to around €30k (looks like around 6 months’ expenditure for you).

Then I’d start building a diversified portfolio with the remaining monies and existing shares to supplement my retirement income.

Your lack of retirement provision is the obvious flashing red light here, which you know.
 
Also at your age review where your pension is invested. Target >80% investment in global equities as you've a bit of catch up to do. Ditch any automatic lifestyling that is the most common for DC pensions
 
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