Mind the pension gap

Providing for my retirement years.

Current research shows that as a nation we are not investing enough in our pensions to adequately provide for our retirement.

With so much demands on our income, it is easy to put our future needs to one side and intend to sort it out later.

Well the time is now.

What steps should I take to help provide a pension for my retirement years?

First you should investigate all available ways of providing a secure income for your retirement years.                                                                                                                              

The main contenders are, personal pensions, executive pensions, PRSAs, AVCs, occupational pension schemes. These products do not suit everyone and you need to choose the one which is best for you.

To get a clear understanding of which option would suit your individual circumstances talk to one of our experienced and qualified advisors.

I have a pension, how can I check if I am saving enough for my retirement?

You can use our pension savings health check worksheet to see if you are on target.

Download our pension savings health check worksheet here>>

Or,

You can use our mind the gap calculator, provided by Aviva, below, remember to click back to this page when you have completed the calculations. {KomentoDisable}

 , For our mind the gap pension calculator Click here>>

What can I do to fix the gap in my pension funding?

If after taking the gap test, you find that there is a shortfall in savings for your future, don't worry, all is not lost.

The big plus is that you are aware of it now, and can take positive steps to fix it, before it is too late.

For more information read more>>

 Photo Andrew Gustar Some rights reserved                         

Unit Linked Savings

A Unit linked savings plan is a life assurance policy to which the policyholder pays a regular premium usually monthly, which notionally buys units in one or more unit funds operated by the life company. The policyholder may encash these units at some stage in the future, to provide a capital sum to meet some financial need.

Purchasing units

As each regular premium is paid into the plan, it purchases units of the life company’s unit fund at the Offer price. As the number of units attaching to he plan increases so does the encashment vale of the pan therefore building up a capital sum.

Savings term

Most unit linked plans do not have a fixed savings term. Most plans are open ended- can encash the plan at any time. However, Life assurance savings plans are not suitable for short term savings and the normal recommended minimum savings term is usually 10 years. This is because of the charges deducted from the plan at the outset and the fact that the premiums are usually invested, through the unit fund, in stocks and shares which can fluctuate in value.

Encashment Value

The encashment value at any time is usually calculated as:

No of Units * Bid price

Life Cover

 A unit linked savings plan issued by a life assurance company is a life assurance policy; it must provide some death benefit. I.e.

• A specified level of cover or

• The encashment value of the plan at the date of death {KomentoDisable}

Tracker Bonds

Life Assurance companies offer structured investment bonds (tracker bonds), that aim to allow investors participate in equity market returns with the benefit of a high level of capital guarantee. They are fixed term bonds, usually between 3 to 6 years.

Structure

The investment made by an investor in a deposit Tracker Bonds is split into three components:

• Most of the deposit is placed with the Bank at a fixed rate for the term of the Bond, to provide the level of capital guarantee promised.

• Part is used by the Bank to purchase a derivative from a large international investment bank, who in return undertakes to pay the Tracker Bond bonus amount, if any, to the bank at the end of the Bond term.

• The balance of, the investment amount is taken as initial charges; part of which may be used by the Bank to pay commission to deposit brokers.

So a Tracker Bond is essentially a fixed rate term deposit as, usually, more than 80% of the investment amount is in fact invested in a fixed interest term deposit, for the term of the Bond.

Access to funds

Tracker Bonds are illiquid investments i.e. there is no facility for the investor to encash the bond before the maturity date. The funds are tied up for the term of the Bond.

Limitations

• The investment must be maintained for the full term in order to obtain the full guarantee and bonus promised.

• Generally no access to the investment during the term of the bond. {KomentoDisable}

With Profit Bonds

A with profit whole of life policy is a form of traditional with profit which provides a guaranteed sum assured payable on death whenever that occurs, in return for a fixed premium. The premium may be payable throughout life or may cease at a specified age i.e. 65.

The life company actuary works out the profits of the life company’s with profit fund each year and then decides on the bonus to be added to it with profit policies for that year. There may also be a terminal bonus added on maturity of the policy.

Encashment Value

A with profit whole of life policy acquires a surrender/ encashment value i.e. a cash sum which the life company pays if the policyholder decides to stop paying premiums and terminates the plan. The encashment value gradually builds up over the years.

 At mypremium.ie we can choose from a huge range of Product Providers to tailor the best plan to meet your specific needs. {KomentoDisable}

Financial Review

A Financial Review is a full check up of all your financial outgoings the purpose of which is to ensure that you are spending no more than necessary and getting the best value for your money. Your life protection, serious illness, income protection, retirement provision, savings both short and long term will be accessed and you will be provided with a full report of the findings.

What documents do I need in order to avail of a Financial Review?

Any existing financial documents such as bank statements, mortgage statements, life protection policies, car and home insurance policy documents together with any insurance documents.

How much will it cost me?

Not having a Financial Review could cost you thousands. Most reviews lead to substantial savings. Your first appointment is FREE and a detailed account will be provided to you at this meeting.

How long will it take?

Your first meeting will take approximately 1 hour and your second should take approximately 45 minutes. Don’t delay –call 1890 666 666 and make your FREE appointment today.{KomentoDisable}