Why do I have no state pension?

The Government issued their National Pensions Framework document in 2010. Within this document was a recommendation to increase the age at which people qualify for the State Pension.

• From 2014, you will need to be age 66 before you qualify
• From 2021, you will need to be age 67 before you qualify
• From 2028, you will need to be age 68 before you qualify

For example, if you are aged 35 today, you will not qualify for the State Pension until you reach age 68. Therefore, if you had hoped to retire at age 65, you may have to fund an even larger Pensions Gap.

You should speak to a Financial Adviser for all the help you need in closing your pension gap.

A Tale of Two Pensioners

Assumptions

Regular contributions are paid in advance (i.e. at the start of each month). Regular contributions go up by 3% per annum each year over the term of your plan. Contributions are invested in a Simple PRSA0 product, which has a fund management charge of 1% per annum and a contribution charge of 0% of each contribution.

The projected values assume an investment growth before retirement of 5.05 % per annum. This rate is for illustrative purposes only and is not guaranteed. Actual investment growth will depend on the performance of the underlying investments and may be more or less than illustrated.

The assumed inflation rate for present day values and values at retirement is 3% p.a.

The illustrations contained in this quotation follow the guidelines issued by the Society of Actuaries in Ireland.

The annual rate used to calculate the estimated pension is based on a post-retirement interest rate of 4% per annum and is in line with the guidelines issued by the Society of Actuaries in Ireland.

The estimated annuities quoted are payable monthly in advance and guaranteed for 5 years and life thereafter:

The annuity rate used assumes an attached spouse's annuity of 50% of the main life's annuity which is payable on the death of the main life. Annuity payments increase by 2% per annum.

The annuity rate used is a long term average rate and is not guaranteed. The actual annuity rate available at retirement may differ from the annuity rate used in the illustration. Different annuity options can be chosen at retirement.

Under the new National Pensions Framework, the age at which people qualify for the State pension will increase over time - to 66 years of age in 2014, 67 in 2021 and 68 in 2028. The amount payable may vary depending on certain criteria being met. The State Pension (Contributory) remains at 11,976 p.a. in today's terms.

Disclaimer: The assumed inflation rate for present day values and values at retirement is 3% p.a. All values are for illustrative purposes and are not guaranteed. In accordance with the Finance (No 2) Act 2011, an annual stamp duty of 0.6% of the value of pension funds was introduced by the Government. The levy will apply for a period of 4 years (2011 to 2014) and is payable at the rate of 0.6% of the value of the pension fund on the 30th of June each year. Please note that the projected values shown reflect expected future levy deductions.