Pensions Coach

Bernard: "Let's start with the big one. What's the question you hear more than any other from people approaching retirement?" Clair: "Without a doubt it's: 'Can I afford to retire?' Many people approach retirement without a clear picture of how much income they'll actually have. The good news is that's something you can change. The truth is that retirement affordability isn't only about reaching a magic number. It is about whether your pension pot, State Pension, savings and investments can provide the income you need to support the life you want to live. That's why I always encourage people to look at both sides of the picture: the lifestyle they want and the money available to support it. Do you want to travel? Spend more time with family? Take up new hobbies? Maybe help children or grandchildren financially? Your pension, the State Pension, savings and investments can all contribute towards that lifestyle. The important thing is understanding how all those pieces fit together and whether they can provide the income you'll need." Bernard: "So the size of the pension pot does matter, but it is not the only thing to look at?" Clair: "Exactly. What matters is what income your pension could provide, how that fits with your other sources of income, and whether it is enough to support the retirement you want." Bernard: "So retirement confidence comes from having a plan." Clair: "Exactly." Second Half Action Think about the retirement you want, then check whether your pension and other income could support it.

Bernard: So, Norman we’re in the Aviva Stadium this morning for the launch of the second-half campaign. One thing that stood out to me from this campaign was when you retire, your pension effectively becomes your employer. What does that really mean? Norman: Exactly as you say, during your working life, it's your employer that pays for your pension, or if you're self-employed, your business does, or if you're a company owner, the company pays for it. But actually, when it comes to retirement, that fund actually becomes your employer, because that's where you derive your income from. So that's why it's so important to have a plan in place, because that fund decides on the lifestyle that you're going to live in retirement, how long the fund is going to last for, is it guaranteed? A simple question would be, you know, are you going to spend more in your 80s than you are in your 70s? Probably not. Do you want to leave a legacy for your children afterwards? So, there's loads of different permutations of decisions to be made at retirement. So, it's more focused on the plan rather than the pot. Would you ever come across clients who haven't got ahead of it on a 50? Bernard: Would you ever come across clients who haven’t got ahead of it at 50, is it too late to get going? Norman: No, certainly the earlier the better. But it's never too late to start is what I would say. I would hate for someone to start a pension at 40 years of age, contributing to a pension and not revisiting it until 60 because they're coming close to retirement. It needs to be revisited on a regular basis to make sure It's going to deliver what you expect it to deliver, because you don't want to shock at sixty-five.

Bernard: "Be honest. If someone's 60, feels they've neglected their pension and discovers it's smaller than they hoped, have they left it too late?" Declan: " Maybe not.

More people are in that position than you might think. Careers change, families grow and life doesn't always go according to plan. The good news is that many people still have years before retirement. That can be an important opportunity to review contributions, track down old pensions and understand what retirement income might be available. Many people are also surprised to learn they may benefit from substantial pension tax relief on contributions, subject to Revenue rules and limits. The most important thing is understanding where you stand today. Once you know that, you can make informed decisions about what happens next." Bernard: "So the score isn't final at 60?" Declan: "Definitely not. Taking action today can still make a meaningful difference." Second Half Action Don't focus on what you could have done. Focus on what you can do next.  

Bernard: "This one comes up all the time. Everybody loves the idea of a tax-free lump sum. Is taking the maximum always the right move?" Stephen: "Not necessarily. Many people use a lump sum to clear debt, build emergency savings, invest in a property, or help family. But every euro you take out today is one less euro available to provide income later. The real question isn't 'How much can I take?' It's 'What will I need my pension to do for me over the next twenty or thirty years?' Because this decision can affect your future retirement income, it's worth getting personalised financial advice before you decide." On-screen text: Important decisions about your pension should be made with personalised financial advice. Bernard: "So don't just think about today." Stepheb: "Think about the future as well." Second half action: Consider both today's needs and tomorrow's income, and speak to a financial broker before making retirement decisions.  

Bernard: “I’ve spent years paying into a pension. Retirement is getting closer. When can I actually access my pension and what happens next?" Clair: "The age at which you can normally take retirement benefits depends on the type of pension arrangement you have, the rules that apply to it and your employment status. For many pension plans, retirement benefits can be taken from age 60, while some occupational schemes may allow access from age 50 if you've left service. In most cases, benefits must be taken by age 70 or 75. Individual scheme rules and products can vary.

Once you're approaching your chosen retirement date, it's important to understand what pensions you have, what they're worth and what retirement options may be available to you. Many people are surprised to discover they have more than one pension, or that they haven't reviewed their retirement plans for years. Preparing early gives you more time to understand your options and avoid rushed decisions later." Bernard: "So retirement planning really starts before retirement?" Clair: "Exactly. The more prepared you are before you retire, the more confident you'll feel when the time comes." Action If retirement is within five years, start reviewing your retirement plans today.  

Bernard: "Nobody likes thinking about it, but it's an important question. What actually happens to your pension when you die?" Karen: "It is an important question, and the answer depends on the type of pension you have and whether you've already retired. Many people are surprised to learn that pension benefits don't necessarily disappear when they die. Depending on your circumstances, benefits may be payable to a spouse, civil partner, children or other beneficiaries. If you have an Approved Retirement Fund, or ARF, any remaining value in the fund may form part of your estate and can pass to beneficiaries, subject to the relevant tax rules at the time. If you have an annuity, what happens will depend on the type of annuity you selected when you retired." Bernard: "So it's not simply a case of the pension ending when you die?" Karen: "Not at all. That's why understanding your pension arrangements and keeping beneficiary nominations up to date is so important." Bernard: "And presumably it's something families should discuss." Karen: "Absolutely. A little planning now can provide clarity and reassurance for the people who matter most." Second Half Action Take a few minutes to check who would receive your pension benefits and whether your beneficiary details are up to date.  

Bernard: "Some people tell me they don't want to spend retirement worrying about stock markets or investment performance. What would you say to them?" James: "An annuity may be worth considering. An annuity is one way of turning pension savings into a regular income. Depending on the option selected, that income can be guaranteed for life. That means you'll know exactly how much income you'll receive, regardless of what happens in investment markets. For many people, that certainty provides valuable peace of mind." Bernard: "So the focus is on certainty rather than flexibility." James: "That's right. The right choice depends on what's most important to you and how you want your retirement income to work." Second Half Action Think about whether flexibility, certainty or a balance of both matters most to you.

Bernard: "Many people have worked for a few employers over the years and have pensions in different places. Should they combine them?"

Aviva SME: "That's a really common situation.

Many people have pensions from previous jobs that they rarely think about.

Bringing pensions together may make them easier to manage and can give you a clearer picture of your retirement savings.

However, before making any changes, it's important to understand what benefits and guarantees may be attached to each pension.

A financial broker can help you review your options and decide what's appropriate for your circumstances."

Bernard: "So bringing pensions together might make things simpler, but it's important to understand what's inside each one first?"

SME: "Exactly."

Second Half Action Make a list of every pension you've built up throughout your career.

Bernard: "When I get to retirement, what options do I have?" Stephen: "Most people are surprised to learn they usually have choices. Depending on your pension arrangement, you may be able to take a lump sum and then decide how the remainder of your pension savings are used to provide an income. You might choose a guaranteed income through an annuity, an Approved Retirement Fund, known as an ARF, or sometimes a combination of options. The right answer is different for everyone." Bernard: "So retirement isn't one-size-fits-all."

Stephen: "Exactly. Understanding your options helps you make decisions that support the lifestyle you want. We’ll talk more about ARFs and Annuities in other videos" Second Half Action Start exploring your retirement options before you plan to retire.  

Bernard "When people think about retirement, where does the State Pension fit into the picture?" Karen "For people who qualify, the State Pension can provide an important foundation for retirement income. It's generally available from age 66 and eligibility depends on your PRSI contribution record. However, for most people, it's only one part of their retirement income. Workplace pensions, personal pensions and other savings often play an important role as well.

Looking at all these together gives you a much clearer picture of what retirement income might look like." Bernard "So don't think of the State Pension as the whole retirement plan?" Karen "Exactly. Think of it as one important piece of the puzzle." Second half action: Understand how all your sources of income could work together in retirement.  

Bernard: "When I get to retirement, what options do I have?" Stephen: "Most people are surprised to learn they usually have choices. Depending on your pension arrangement, you may be able to take a lump sum and then decide how the remainder of your pension savings are used to provide an income. You might choose a guaranteed income through an annuity, an Approved Retirement Fund, known as an ARF, or sometimes a combination of options. The right answer is different for everyone." Bernard: "So retirement isn't one-size-fits-all." Stephen: "Exactly. Understanding your options helps you make decisions that support the lifestyle you want. We’ll talk more about ARFs and Annuities in other videos" Second Half Action Start exploring your retirement options before you plan to retire.  

Bernard: "People spend years planning to get to retirement. How many think about how long retirement might last?" Declan: "Probably not enough. If you retire in your mid-sixties, there's every chance your retirement could last twenty years or more. For many people, retirement may be one of the longest phases of their life. That's why retirement planning isn't just about reaching retirement. It's about creating an income that could support you for decades." Bernard: "So retirement could be one of the longest phases of life." Declan: "Exactly. And that's why planning for the long-term matters." Second Half Action Take time to understand how long your retirement income may need to last.

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