Advice about giving up job

Z

Zumba

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I'm very concerned about the fact that the state may have a shortfall of cash by the time I'm due to retire. I am currently on career break and have one year left. I am working in the Middle East which means that the job I have is not secure. However, the weather is good and the money is good for now. I keep being told that I should not give up my job at home because I will get a good pension and at least the job is secure. Originally I would have agreed with this and to be truthful it is the only thing that would bring me back to the country. However, according to the post the government is unlikely to have the money to pay me by the time I will retire. There is no reason for me to live in Ireland other than the job. I thought that at least if I had a goal at the end I could keep going but if that goal is a false one I'm not sure I should go home. I could really do with some advice from someone who is neutral.
 
Zumba,

There will be problems with your future pension.
You may end up with circa 80% of what you thought.
That is still more than surviving on insecure work in Middle East, unless you can put an inordinate amount by in savings.
How much longer will Mid east work last etc etc?

When you come home you can add a Private Pension called AVC (additional voluntary contribution) that is always ring fenced and remains yours.

In short there will always be a (state) pension and there are good incentives (that will get better) to add on AVCS.
 
Thanks you both for the advice. I can't say I enjoy the Middle East but I find the weather at home crippling and for other reasons wasn't very happy before I left. At least the weather in the Middle East is good for the most part. However, the work here is very insecure. There is no employment protection and so you can loose your job with very little notice. As it is you are on year to year contracts. I could probably put away about 15,000-30,000 euro a year but like I said that is only while you're working and it varies from job to job.
 
Are you in the public or private sector?

If you are in the private sector, you can ask the trustees for a copy of the actuarial reports to see what the financial situation of the scheme is.

If public sector, the government do not save to pay the pensions, they take it out of the Exchequer each year. It will become a problem but we do not know when that will be or will something be done to fix it (probably too late if they do).

Steven
www.bluewaterfp.ie
 
I'm in the public sector. Hence my reason for wondering is it worth suffering for 20 years in Ireland for a pension that may not materialize? On the other hand is it worth the risk of giving up a a job when the one I have is so insecure?
 
Do what makes you happy. We only get one life.

There are things we can control and can't control. Only worry about the things that are within your control.

If living in Ireland is like suffering, don't live there. If you don't think the public service pension will be paid to you (I think it will), get a job in the private sector with a defined contribution scheme. If your current job is very insecure, get one with more security.

There are lots of things you can do to solve your problems.


Steven
www.bluewaterfp.ie
 
Hi Zumba,
my take on your post is that you have reached a time in your life (I don't know what age you are, so only going on your post), where you have hit the "what am I doing here, where am I going, what will I regret, what is it all about, etc." phase. This has caused you to fixate on one aspect in the (possibly) distant future, i.e. the possibility of a pension when you retire.

This part of your life can be one of the most exciting, if approached openly, with a sense of adventure, and the desire to savour the present oppertunities (which you may be missing as you worry anxiously about what "may" happen). After all, you may not reach retirement!

So' Id suggest having a think about why you are worried about something that may or may not happen in the distant future. And what are you going to do now on the road to getting there.

(And listen to Baz Luhrmanns "Wear Sunscreen" song https://en.wikipedia.org/wiki/Everybody's_Free_(To_Wear_Sunscreen)

And I hope the original poster doesn't mind, but as a wakeup call
http://www.askaboutmoney.com/threads/finances-and-recently-diagnosed-terminal-illness.194930/
We never know what's around the corner, never mind 20 years down the road.

Have a good one.
 
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