How much 'should' you have in a pension at age 50?

[ronaldo]

Using the rule of 72 to give a rough estimate, a €400,000 pot would double in 15 years if you got an average return of 4.8%.

If/When inflation normalizes, you'd probably be looking at a return a little above 7% to achieve that in inflation-adjusted terms. This inflation-adjusted €800,000 would be enough to take the full tax free lump sum allowance (based on today's rules - we'd hope that the allowance would be adjusted upwards as €200,000 would be a pitiful allowance in 15 years time).

Add to that further contributions and it's a position that many would be envious of.

 

[TRS30]

Using the rule of 72 to give a rough estimate, a €400,000 pot would double in 15 years if you got an average return of 4.8%.

If/When inflation normalizes, you'd probably be looking at a return a little above 7% to achieve that in inflation-adjusted terms. This inflation-adjusted €800,000 would be enough to take the full tax free lump sum allowance (based on today's rules - we'd hope that the allowance would be adjusted upwards as €200,000 would be a pitiful allowance in 15 years time).

Add to that further contributions and it's a position that many would be envious of.

I would very happy with €800K (current value) inflation adjusted in 15 years.

 

[fastfullback]

Quick Q. I had a excel that I use to project my pension value. Based on current value, max contributions for my age and an adjustable projected growth rate (which I typically put at around 6-7%).
One thing I dont have in this excel is any allowance for inflation impacts.

Any ideas how I would add this? Would I just reduce the projected growth by say 2% (assuming we will get back to 2% inflation target)

 

[3CC]

Quick Q. I had a excel that I use to project my pension value. Based on current value, max contributions for my age and an adjustable projected growth rate (which I typically put at around 6-7%).
One thing I dont have in this excel is any allowance for inflation impacts.

Any ideas how I would add this? Would I just reduce the projected growth by say 2% (assuming we will get back to 2% inflation target)

You could do just what you say and it would be very close.

It might be slightly more correct to increase your living costs every year by the expected inflation rate and then use that figure to calculate your pension drawdown for each year...

 

[Gordon Gekko]

Quick Q. I had a excel that I use to project my pension value. Based on current value, max contributions for my age and an adjustable projected growth rate (which I typically put at around 6-7%).
One thing I dont have in this excel is any allowance for inflation impacts.

Any ideas how I would add this? Would I just reduce the projected growth by say 2% (assuming we will get back to 2% inflation target)

I use a 5% growth rate for my investments and 2% for my current expenditure. I also add in an inflated contingency for medical/nursing home expenses, but the point that’s sometimes missed is that most of the other expenses fall away if you’re in a home.

 

[timberman]

Some of the pension pots been spoken of here are out of reach for many of us, im 55 and have a pot of circa 520K which i can access at 60.
Im fed up in my clerical job and beren offered redundancey of 150K after 30 years , salary is 60K, thinking of taking it and picking up part time work if possible to keep me ticking over until 60 along with redundancey , mtg of 60K is only debt, finishs at 63 , 700 pm

 

[fin-noob]

What funds have you been invested in over the last 20 years?

Work provides pension with IrishLife. I had 85% with 'EMPOWER Growth Fund' (risk rating 4) and 15% with 'Empower High Growth Fund' (risk rating 5), whatever these two means.

Empower Growth fund, Risk Rating 4
Asset Mix: Equity, Bonds, Property, Cash and Alternatives
Performance since launch:
+6.99% Annualised, +110.89 % Cumulative

Empower High Growth fund, Risk Rating 5
Asset Mix: Equity, Bonds, Property, Cash
Performance since launch:
+5.36% Annualised, +45.5 % Cumulative

Total fund went down massively in 2022, despite me paying in 35k-40k
Paid in close to 40k in 2023, and the total fund value went up by approximately €50k.

Current value approximately €545k (plan going on exactly 20 years now, max avc perhaps last 10 years).

 

[looptheloop]

I worked construction for over 32 years. I was never offered a pension plan until recently as it wasn't compulsory in the building industry.

I was working for the biggest construction company in the country and ended up with a serious back condition due in part to their shoddy work practices. I had to retire due to ill health and am on Invalidity benefit now.
I had just made the basic contributions for a number of years as I had a young family and a child with a disability, I wasn't in a position to put any extra into the AVC.

Apart from my Invalidity Benefit of 230 Euro per week my pension from the Construction Workers Pension Scheme is 49 Euro Per month!!
That will be it for the rest of my life pension wise. 6 or 700 euro per year for the next 25 years!! I f I had my time again I would have got a pension going very early and contributed as much extra as I could.