Do you know your magic number?
- Posted by Tom Duffy
- Posted in BlogsTom's Blog
Most people have a really good idea of some of the things they want to be able to do when they stop working. Very few people, however, know their magic number. This is the amount of money you need to have in your pot to give you the income you want when you retire.
If you do not hit that magic number, the retirement you are planning may never become a reality.
Work it out now
At www.pensionauthority.ie you will find a pension calculator that will help you work out what you need to be putting away to give you the retirement income you want. If there is a difference between the number from the calculator and your current pension fund value then you have a gap.
Bridge the gap
If you find the money in your pot is some way off your magic number, there is still time to take action. Sometimes, just a few small changes can make a big difference.
You could start to pay a little more into your policy every month. If you get a windfall – like a bonus or inheritance – you could pay some of it into your pension pot.
And if you have other pensions, it is easier and potentially more cost effective to transfer them into your pension pot – because everything is in one place. Pension transfers may not be suitable for everyone as valuable guarantees and protection may be lost.
And remember, one of the great things about saving into a pension fund is that the tax man also helps by giving you tax relief. Please remember, tax relief on pensions may change and it does not to apply to transfer or employers payments.
If you want to talk to someone about working out your magic number or paying more into your plan, please do not hesitate to contact Duffy Financial Advisors Mullingar on 087 2575736. You can increase your payments, make once of payments or transfer in other pensions.