Pension Valuation loss what do I do?

H

HMCE

Registered User
Messages
43
I started a pension through my own Company in Nov 2001, I stopped contributing in August 2008. I have enquired about the Contributions made and the Transfer Value of the entire fund and was told the following:

premiums paid for this policy:

Employee Single Premiums €9,600.00
Employee Regular Premiums €3,301.22
Employer Single Premiums €9,000.00
Employer Regular Premiums €36,301.22

Total Contributions €58,202.44

The current Nominal and Transfer Value is €46,906.60


This leaves me with a Pension after 8 years at a loss of 11,295.84 I have the following questions as this seems ridiculous to me

1. I don't know much about Pensions and need advice as to how to stop this loss making situation

2. Is this normal in the currect financial Crisis?

3. I am 41.5 yrs and expect to be able to draw this pension when I am 65, will it be worth anything by then?

4. Should I withdraw the transfer value and invest in Property instead?

5. What would you do in my situation?

Thank you
 
HMCE said:
I started a pension through my own Company in Nov 2001, I stopped contributing in August 2008. I have enquired about the Contributions made and the Transfer Value of the entire fund and was told the following:

premiums paid for this policy:

Employee Single Premiums €9,600.00
Employee Regular Premiums €3,301.22
Employer Single Premiums €9,000.00
Employer Regular Premiums €36,301.22

Total Contributions €58,202.44

The current Nominal and Transfer Value is €46,906.60


This leaves me with a Pension after 8 years at a loss of 11,295.84 I have the following questions as this seems ridiculous to me

1. I don't know much about Pensions and need advice as to how to stop this loss making situation

2. Is this normal in the currect financial Crisis?

3. I am 41.5 yrs and expect to be able to draw this pension when I am 65, will it be worth anything by then?

4. Should I withdraw the transfer value and invest in Property instead?

5. What would you do in my situation?

Thank you
Click to expand...

Keep paying in to avail of the tax benefits. If you're uncomfortable with taking risks ask your pension provider to move your fund into safer investments.
 
Thank you Derk for the reply, Tax benefits are a good reason for putting as much as one can into a Pension especially if one is a Driector of their own company. But unfortunately when a pension is in a severe loss making state as mine is, one must also take into account that any monies lost are 40% Tax and the other 60% lost is your take home pay, that 60% if put into other investments may make you money and not losses......
 
HMCE said:
1. I don't know much about Pensions and need advice as to how to stop this loss making situation

2. Is this normal in the currect financial Crisis?

3. I am 41.5 yrs and expect to be able to draw this pension when I am 65, will it be worth anything by then?

4. Should I withdraw the transfer value and invest in Property instead?

5. What would you do in my situation?
Click to expand...
1. Most pension funds are equity based and so have lost money.
2. Yes
3. Have a luck here:
http://www.pensionsboard.ie/pbcalc/pensioncalculator.asp
But really nobody knows for sure.
4. Personally I would say no.
5. Get professional advice, probably worth paying for independent advice.

TBH, I'm sceptical that any of us with 20-30 years of working left will be in a position to retire at 65
 
You must log in or register to reply here.
Back
Top