Category

Retirement Planning

Reform of the State Pension

A Roadmap for Pensions Reform 2018 – 2023: Reform of the State Pension

In Autumn 2018, the Department of Social Protection launched the Roadmap for Pensions Reform which contained 6 main strands of which Strands 1 is the most important for those nearing retirement age.

Adequacy

The reform sets a proposed target for payment of the State Pension to a level at approximately 34/35% of average earnings. It is proposed to link further increases to changes in the Consumer Price Index and to wage levels in order to ensure that the value of the State Pension is maintained.

Sustainability

The State Pension is premised on the principle of social rather than personal insurance and operates on a Pay as You Go (PAYG) basis meaning that today’s pensions are not funded by past contributions made by today’s pensioners but are instead funded by the taxes and social insurance contributions of today’s workers. The PAYG model works for as long as there are roughly four or more workers contributing into the Social Insurance Fund (SIF) for every pensioner drawing from it. Ireland is facing huge demographic challenges which will Continue Reading

Why bother having an Enduring Power of Attorney?

What is an Enduring Power of Attorney?

Having an Enduring Power of Attorney (EDU) in place is becoming more important now that we are all living longer and as a consequence the incidences of dementia and/or Alzheimer’s Disease is becoming more common. Both spouses and/or single people should have an EDU.

How to make an EDU

Get to a Solicitor. Ask the Solicitor what fees may attach to this service. The Solicitor will then take you through the four step process.

Step 1: You are asked to nominate a person to whom you wish to give the EDU and the Solicitor will then take you through a list of powers which you wish to evolve to the nominee.

Step 2: Your solicitor will ask you to nominate 2 persons in your family who will be notified in writing of your decision to make this EDU. There are legally defined issues around nominees.

Step 3: Your Solicitor will then contact your own doctor and will instruct you to visit the doctor within 21 days of signing the EDU and if appropriate your doctor will certify that you have the mental capacity to make this decision.

Step 4: Once the Solicitor receives the doctor’s certificate it is placed in your file. In the event of you losing your mental capability to make decisions your Solicitor will apply to the High Court to have the EDU activated. This final process is relatively straight forward once the paperwork is properly formulated. Continue Reading

Importance of Making and Updating Our Wills

Surveys show that most of us are less than careful when it comes to ensuring that we take care of those who will be left behind when we pass on to the next life.

Many people are reluctant to make a Will. If you fail to make a Will then your descendants will pay a large share of your estate in surplus tax as a result of you dying intestate and settling your financial affairs will take a lot longer. A Will helps identify your resources and ensures that your property passes to the people of your choice and helps avoid family issues..When you have made your Will you should review it approximately every five to seven years.

How to make a will

Spend some time thinking through what you want to put in your Will – don’t just dash in to making your Will until you have prepared some notes to take with you when you get to a Solicitor. Prepare a list of your assets, your insurance policies and a list your creditors. Decide on whom you want to benefit under you Will and whether or not you wish to leave assets in trust. Be sure to ask the Solicitor what fees may apply to this service.

Wills must be in writing, signed by the testator (the person making the Will) and witnessed by two independent witnesses. Neither witness nor the spouse of a witness can be a beneficiary under a Will. You will be asked to nominate an Executor who will be responsible to see that the will is enacted after your death. Continue Reading

Why Employers Should Provide Retirement Planning for Employees?

Work practices in developed countries have changed significantly in the past two decades, with many workers now changing jobs every 7 to 10 years. As regards the current cohort of the population in the 50 plus age sector, the average working life of these individuals whom we now meet on our retirement courses ranges from 42 to 50 years of working life-service. In many cases this involves at least 2/3 of this time or an average of 30 years will be provided as working service by most employees.

The question for employers here is whether they have a social and moral obligation to repay that loyalty to their organisation by helping those approaching retirement to prepare for such an important and significant milestone in their personal lives, particularly if Continue Reading

What Retirees Should Know About State Entitlements

The key information sources are though leaflets which are available on-line from www.welfare.ie or at Social Protection Offices or Citizens Information Offices.

The second most important research that any employee should conduct is to seek out their Social Contributions Record to ascertain the precise details of contributions which they have been making throughout their working life.

Social Insurance Record

Your record begins when Continue Reading