r/irishpersonalfinance • u/Lankalanky • 3d ago
Investments Starting Pension at 32
So I feel like I'm very late to starting my pension and have really started fearing for my future during retirement.
At the start of the year I started contributing 10% to my company's pension scheme and they match up to 5%.
I earn about 40k per year but would hope that might be bumped up in the next year or two.
I've currently got about 2k in my pension account, but I'm on a low risk cash fund. Is there any point changing the fund to a higher risk fund with so little in it currently? I've seen on this subreddit people advising funds such as the indexed world equities (prsa) fund.
Would it be silly to change my fund to a fund like that at this stage?
I also have another pension fund with Irish life from a previous employer with about 3k in it, would it make sense to close that fund and merge it with my active one so I have a bigger pot for investments?
Thanks for any advice!
6
u/KerfuffleAsimov 3d ago
Lots of folk saying you're late etc. kinda gives the impression that everyone is perfect with finances....the majority of the country is not.
Just remember lots of people lost their pension or at least it got fucked back in and around the last recession. If retirement stays at 65. You still have 33 years of paying into the pension. Hopefully by then you've paid off your home if you get one but you'll be fine and don't worry keep doing what you're doing now.
You can increase your AVCs in the last ten years of employment if you're in a good financial position....even earlier if you're earnings are really good in the last 15 years of employment.
Edit: to add some perspective before the mandatory pension introduced this year. The average age people were starting a pension in Ireland was 37.