Employer pension scheme - career plans elsewhere in 2-3 years

[fobster]

Hi,

My employer is setting up a pension scheme for employees, no talk of employer contributions, if I see myself moving on in 2-3 years should I sign up for it? I have a pension fund from a previous employment with a current value of €107,000. I'm 37 so I do want to start contributing to a pension plan again, should I just sign up for one independent of my employer given my medium term career plans?

Thanks

 

[ClubMan]

You should clarify if there will be any employer contributions/matching first.
Then check the charges on the scheme.
These details will play a big part in deciding whether it's better to go with this occupational scheme or go your own way (e.g. a low charges PRSA).

While you're at it you should the details, investment fund details, and charges of your existing fund from previous employment to ensure that you're getting value for money.

I'm assuming that you don't have other priorities such as dealing with debt or buying a home which might take precedence over pension matters.

 

[so-crates]

If there are no employer contributions then it comes down to charges, do some research, find out what you would be charged if you DIY and then see how their offering compares when they give you the details.

 

[Steven Barrett]

If there are no employer contributions, then it is just a PRSA scheme that they are obliged to provide through law. You need to check the contribution rate on that to see how much of your money is invested.

If there is a employer contribution, join the scheme. If it is a PRSA, you are entitled to the value of their contributions immediately. If a Master Trust, it is 2 years before you are entitled to their contributions. If you leave beforehand, transfer the €107,000 into the new plan. Time in the previous scheme also transfers and you fulfill the 2 year requirement! It may take a month or two to transfer the money, so make sure it is in before handing in your notice.


Steven
www.bluewaterfp.ie