Paul Merriman on pensions: ‘I’d rather see clients mortgage-free by 66 even if that means delaying contributions’
· 32 min
Episode Paul Merriman on pensions: ‘I’d rather see clients mortgage-free by 66 even if that means delaying contributions’
If you think €40,000 a year would give you a comfortable life in retirement, the maths might give you a land. A 30 year old on just over €60k per annum would need to start saving 22% of their monthly income (€1,135) to secure that figure by the time they’re 66. And that’s assuming they have the PRSI contributions to qualify for the full State pension; currently a maximum of €15k a year. Who has that amount of money to squirrel away every month, we hear you cry!
Precisely Paul Merriman’s reaction. The financial adviser and founder of AskPaul.ie is here reassure you there’s no need to panic. ”The spreadsheet doesn't know your life, your goals, your ambitions. I'd rather one of my kids set up a business and even fail in the next six or seven years in their 20s than have money set aside in a pension.”
In this episode of Better with Money, Merriman emphasises the need for a realistic financial plan that looks at income, family costs and housing “because a good financial plan will tackle the pension eventually.”
The 44 year old Fairstone Ireland CEO recommends prioritising being mortgage free by 66 even if that delays pension saving. He explains the tax relief in a nutshell, how pension plan tweaks (like upping your risk level) might be more prudent than increasing your contributions and urges listeners to set clear financial goals.
Presented by Aideen Finnegan.
Hosted on Acast. See acast.com/privacy for more information.
Links in the notes 1
Shows are listed from Apple Podcasts' charts and directory, and Podcast Index where it is used. Every show and episode belongs to its publisher and plays from the publisher's own feed; this site hosts none of them. Explicit shows are for adult profiles only, and children’s profiles hear only children’s shows. More about this list.