Less Than a Decade to Retirement? Let’s Get You Ready!

You’ve spent your working life building up savings, and now it’s time to make sure those savings can support the lifestyle you want in retirement.

I help clients get a clear snapshot of where they stand today and what changes—if any—are needed to reach their goals. Here are a few key areas we typically look at:

1. Estimate your retirement expenses

Many people don’t know how much income they’ll need once they retire. Start by building a budget that includes essential living costs as well as extras like holidays, hobbies, and gifts. This helps you figure out how much income your pension and savings need to generate.

2. Identify your income sources

Once you’ve worked out your target income, the next step is identifying where it will come from. This may include workplace or personal pensions, the state pension, rental income, or savings and investments. Understanding this mix helps you plan how and when to draw from each.

3. Boost contributions while you can

If you’re in your peak earning years, now is a good time to maximise pension contributions. Many people choose to top up their pensions with lump sums in the years just before retirement. This can be a tax-efficient way to strengthen your retirement fund.

4. Review your investment risk

As retirement approaches—usually within 10 years—it’s worth checking how your pension is invested. Shifting to lower-risk investments can help reduce the chance of a sudden drop in value at the wrong time.

5. Should you combine pensions?

Consolidating pensions can make them easier to manage, but it’s not always the best option. Some pensions come with valuable guarantees or features you might lose by moving them. Get advice before making any changes.

6. Know your retirement options

Do you know how you’ll access your pension when the time comes? Will you take a lump sum, use income drawdown, or buy an annuity? Exploring your options early can help you align your choices with your goals.

The bottom line?
The years before retirement are critical. A bit of planning now can make all the difference to your peace of mind later. If you’re unsure where you stand, consider speaking with a financial adviser to make sure you’re on the right track.

If you have a Mortgage, please read on.…

In recent times, I've received numerous queries from homeowners who have purchased new properties locally. When taking out a mortgage, most mortgage companies require the buyer to have a mortgage protection policy in place as part of the contract signing. In the midst of the often-stressful process of buying a home, it can be tempting to go with the bank's offer for mortgage protection, as it seems like the simplest and most straightforward option. While there's nothing wrong with going through the bank, many homeowners are unaware that they are not obligated to buy the policy directly from them. In fact, you can shop around at any time to find a more competitive premium.

Mortgage protection is a form of life insurance specifically designed to decrease in value over time as your mortgage balance reduces. This contrasts with traditional life insurance policies, which typically remain at a fixed amount or even increase in value. The purpose of mortgage protection is to ensure that, in the event of your death, your mortgage is paid off, providing peace of mind that your family won’t be burdened with the remaining mortgage balance.

When people reach out to me to review their mortgage protection, I have access to a range of providers and am able to compare premiums from different companies. This allows me to find the most competitive rates available, and I often recommend enquiring about ways to reduce monthly premiums. Life insurance companies occasionally offer brokers special deals, such as reduced rates or additional benefits, which could make a difference in your coverage.

I’ve had cases where, after reviewing mortgage protection policies from the last few years, I've managed to save clients anywhere between 10% and 30% on their premiums, while maintaining the same level of coverage. For example, if your mortgage protection premium is €50 per month over a 25-year mortgage term, saving just 20% on the premium could result in savings of up to €3,000 over the entire term.

Even if you’ve recently taken out a policy, you are not bound to keep it in place as long as you secure a suitable alternative. However, it’s important to note that you should never cancel your life assurance until replacement cover is fully set up and active.

Don’t Just Watch the Dips – Look at the Journey

Every so often, my phone rings more than usual and it’s nearly always when markets are falling. That’s perfectly understandable. When you hear the headlines warning about plunging stock markets or see your pension value dip, it’s natural to feel worried. But here's the thing: these short-term drops often make a lot more noise than the long-term growth.

Most years, the value of mainstream investments, especially higher-risk growth funds, actually goes up. Yet we rarely talk about the steady gains. It’s the sudden drops that make headlines, even if they’re often temporary. Take the S&P 500, one of the world’s most-watched stock indexes. It saw sharp declines in recent times — but most of those losses have already been recovered. In fact, even in the middle of the so-called crisis, the fund was still up over the 12-month period.

That’s the nature of investing: it’s a journey, not a straight line. And my job as a financial advisor is to help people stay focused on that journey.

The investments I use are mostly with mainstream pension and investment providers—strong, regulated institutions with long-term track records. Some of my clients use a specialised investment platform like Conexim, which gives us access to more niche options, but for most, it’s about steady, diversified strategies, not chasing the next big thing.

It’s important to remember that no one can predict the future, not me, not the experts on TV, and not the markets themselves. That’s why risk is part of every investment, including the one most people don’t think about: cash. Even bank deposits can lose value in real terms if inflation outpaces interest.

The key is to match your investments with your goals, your time horizon, and your comfort with ups and downs. Reacting to every drop can do more harm than good because the worst days are often followed by some of the best. So, the next time markets get shaky, and the headlines go into overdrive, take a breath. Look at the bigger picture. Your investments are like a long hike: there’ll be hills and valleys, but with the right preparation and guidance, you’ll keep moving in the right direction.

What Is Salary Protection and Why Should You Care?

Imagine this: you're living your life, working hard, paying bills, maybe saving a little on the side. Then, out of the blue, something happens—a serious illness or injury—and you can’t work for a while. Now, ask yourself: how long could you manage without your income? Weeks? Months? What would happen to your bills, mortgage, or rent? Would your savings cover everything? 

That’s where salary protection, or income protection, comes in. Think of it as a safety net for your pay cheque. If you’re unable to work due to illness or injury, this insurance can pay you up to two-thirds of your salary until you’re fit to return to work, or even until retirement if necessary. It’s like having a backup plan to keep the lights on and the fridge full while you recover. 

How It Works 

Salary protection (also known as income protection) isn’t about scaring you—it’s about being prepared. Let’s say you earn €60,000 a year. With income protection, you could receive up to €40,000 annually if you couldn’t work, even after your employer stops paying you. And here’s the good news: the government gives you a helping hand with this. You can get tax-relief on the premiums you pay at your highest tax rate, making it more affordable than you might think. 

 Why It Matters 

Many people assume their job will cover them if they’re unable to work, but the reality is that most employers only provide sick pay for a few weeks or months at best. After that, you’re often left relying on savings or social welfare, which might not be enough to cover your regular expenses. 

Simple Questions to Ask Yourself 

• How long would my job pay me if I got seriously ill or injured? 

• What would happen if my income stopped for 6 months or a year? 

• Would my family and I be able to manage financially?

Peace of Mind 

Income protection isn’t about expecting the worst—it’s about being ready for it. Just like you insure your car or home, it makes sense to protect what keeps everything running: your income. Talk to a financial advisor or insurer to see what works for you, and ensure your family’s financial stability no matter what life throws your way. 

Having salary protection in place is like knowing you’ve got a lifeline, just in case. It’s one less thing to worry about, so you can focus on getting back on your feet. 

Extra benefits on Life Assurance…at no extra cost

Life Assurance can go beyond helping with financial protection and most companies can include several additional benefits at no extra cost when you set up a policy. Some examples of these complimentary benefits include:

1.    An option to receive a second opinion on a medical diagnosis. This service gives customers access to over 50,000 world leading experts who can double check a diagnosis, investigate alternatives, and get additional treatment options for any condition affecting a person’s quality of life. The life assurance provider will put you in touch with the most suitable expert to answer any questions you might have, give a second opinion and provide a comprehensive report to help you and your treating doctor select the best course of action.

2.    A Digital GP service – this is a private doctor service offering customers and their immediate family access to clinical advice and guidance without having to wait for a face-to-face appointment. It is not for medical emergencies but can be used in the same manner as using a local GP. They can prescribe medication and issue referrals if needed.

3.    Various specialist therapies - such as Bereavement Counselling, Speech and Language Therapy, Face-to-face second medical opinion, Mental Health Counselling, Complementary therapies or Physiotherapy for specific serious health conditions. These are just some examples of additional benefits offered with a life policy.

4.    One month's free cover - your cover starts as soon as your application is accepted but the cost of the first month is covered by the life company and your first premium starts in the second month of the policy.

5.    Stay covered for longer - you can have Term Assurance up until you turn age 91 and alternative life cover beyond that – this is the oldest age offered by any life insurance provider. People are living longer these days, so having the option to extend life cover to reflect this, is useful.

6.    A Get Fit Programme - this is another option with one life company, it includes personalised nutritional recommendations, and an exercise plan designed by a team of nutritional experts.

7.    Children’s Life Cover – many companies automatically include an amount of life cover allocated to children of the policy owner, until they reach the age of 18 (or age 21 if in full time education)

As a broker, I have access to the leading life companies and can tailor your life cover depending on your needs.

€100 into Savings vs Pension

Some clients prefer to save directly into a savings plan, rather than a pension, mostly due to ease of access. With a pension you could be required to wait until your sixties to access funds, so the limitations are not the same as with a savings plan.

At times it is hard to show people the benefit of long-term savings in a pension, as the tax relief on pension contributions and the tax-free growth on pension plans isn’t always obvious. So, let’s see if we can give it a go today.

As an example, let’s look at a person, who wants to invest/save €100 a month for 30 years in an investment savings plan, while trying to match the kind of growth an aggressive pension fund would target. Savings outside of a pension are usually subject to tax on the growth and can be between 25%-41% depending on your investment. Let’s work off 33% tax (same as DIRT tax) on investment growth for this example.

In a pension, if you qualify for tax-relief and are contributing €100 a month, you will get tax-relief of €20 or €40 depending on your marginal tax rate. This means that you will be paying €20 or €40 less tax or to look at it another way, if you chose instead to take that €100 as income (to invest outside of a pension), you would effectively only have €80/€60 in your hand after income tax has been deducted.

For this exercise, I am going to work off the following assumptions.

1.    Saving €100 per month for 30 years, both invested in a fund that has exact same charges and fund return.

2.    Tax-relief on the pension at 20% or 40% and tax-free growth allows a contribution of €125 or €166.67 to your pension for €100 cost.

3.    Gross roll-up tax of 33% tax on the savings plan (you pay growth on tax at end of policy)

After 30 years

Savings value      €67,574

Pension value €103,907 (20%) or €138,546 (40%)

Now, out of the pension you may have to pay some income tax when you are drawing it down. You will currently get a portion of it tax-free and the remainder of the funds are subject to income tax. However, at retirement, most people’s income goes down substantially and in many cases people pay far less or no income tax on their pension deductions. For example, a retired couple over 65 can earn €36,000 income before being subject to income tax.

Automatic Enrolment is expected to start in 2025

The Automatic Enrolment Retirement Savings System is to provide a retirement plan for people without a work or private pension to save for retirement, which will supplement the State Pension.

Why is it being introduced?

*  Not many people have work or private pensions and will only depend on the State Pension when they retire. This means that they may experience a drop in income when they retire which could lead to a fall in their standard of living.

*  Ireland has an aging population, in the future there will be fewer people of working age to support the retired population. To make sure people have enough money when they retire, it is important that people start saving for their future now.

Who will be automatically enrolled?

• Current and new employees aged between 23 and 60 years of age and earning €20,000 or above per annum will be automatically enrolled.

• Employees earning below €20,000 per annum and employees aged under 23 and over 60 will be able to ‘opt-in’ to the system.

• Employer contributions will be limited to a qualifying earnings threshold of €80,000.

How will it work for employees?

~  Unless an employee is a member of a scheme already, contributions during the first six months of membership will be compulsory. Opt out is available after this time and a refund of employee contributions.

~  Members who opt-out will be automatically re-enrolled after two years but will have the ability to opt-out again under the same circumstances outlined above.

~  Invested funds and scheme membership will follow the member when members change employments.

~  Contributions are calculated on your gross salary, starting at 1.5% of your salary and will gradually increase to 6% by year 10. For every €3 that you contribute to your pension fund, your employer will put in €3, and the Government will put in €1. This means that for every €3 you contribute, €7 will be added to your account.

How will it work for employers?

>  Employees will be automatically enrolled with the National Automatic Enrolment Retirement Savings Authority by their employer via payroll software.

>  Employers will be required to make a matching (tax deductible) contribution on behalf of the employee i.e. at a specified contribution rate.

>  Any existing company pension schemes will run parallel to auto-enrolment. Any employees that have a record via payroll of either employee or employer contributions will not be auto-enrolled.

>  Self-employed individuals will not be included in the auto-enrolment scheme.

PLEASE NOTE : This information is correct as of May 2024 - the details of Auto Enrolment are being updated regularly so visit https://www.gov.ie/en/campaigns/0ab04-automatic-enrolment-for-pensions-hub/ for the most recent information.