Reviewing your pension 

Why you should review your pension and what to check

Regularly reviewing your pension is essential to make sure you’re on track to meet your retirement goals. Check your pension at least every 12 months, or whenever your circumstances change, like marriage, having children, salary increases or moving abroad.

Review your fund to make sure you are paying in enough, that you are comfortable with the level of investment risk, and that fees are not too high. Ask about your fund’s performance, risk level, options for switching funds, increasing contributions, tax relief and drawdown age.

Why reviewing your pension is important

After you set up your pension, it is important not to forget about it. You need to review it regularly to ensure you are on track to have enough income in retirement. 

If this is not the case, you should make the necessary changes. You may need financial advice if you are concerned that you will not meet your target retirement income. There are many reasons why you should review your pension, including:

• To make sure your pension fund is not being eroded by fees and charges
• To make sure you will have enough money in terms of a regular income
• To make sure your money is invested in risks that you are okay with
• To keep up with any changes in pension rules or tax relief

How often should you review your pension?

Generally, you should review your pension every 12 months. You should review sooner if you have had a big change in your life that may lessen how much you can save towards your pension. For example, if you are:

• Getting married
• Having children
• Changing jobs
• Getting an increase in your salary
• Moving abroad
• Taking on a mortgage
• Receiving an inheritance
• Approaching retirement

Your life stage

In your 20s or 30s 

You may still be early in your career, so you should look at the minimum amount you can comfortably contribute to your pension and consider other goals you may have, such as saving for a house deposit. 

As you have plenty of time ahead, you also have longer to allow your pension fund to grow and weather the up-and-down nature of the investment, so you may choose to invest in riskier funds that maximise this time.

If you are in your 40s or 50s

You should ensure that your pension fund will meet your expected needs at retirement. Some things to consider might be:

• Do you expect an increase in expenses, i.e., higher utility costs, increased costs for home maintenance, etc.
• Do you expect to continue renting or paying a mortgage in retirement? 
• Do you have any outstanding debt that you will need to continue paying off or clear in retirement?
• How much are you aiming to have in your retirement fund?
• Will you still have any dependents in retirement?
• Should you move your pension to a less risky fund so that ups and downs don’t affect your retirement?

If you are in your 60s 

Start planning how and when you’ll access your pension. Review your options: 

• Take a tax-free lump sum
• Purchase an annuity (guaranteed income for life)
• Transfer funds to an Approved Retirement Fund (ARF) for more flexibility

Check the rules on when you can access it (usually from age 60 for personal pensions, but it may vary for occupational or public service schemes). Consider: 

• Your income needs in retirement
• Tax implications of each option
• Whether you want a guaranteed income or more flexibility

Seek financial advice to help you choose the best option for your circumstances. 

Getting information on my pension

How you get information on your pension will depend on the type of pension scheme you are in:

• If you have an occupational pension, you should contact your human resource department or the relevant person who deals with HR issues.
• If you are a member of a public service scheme, you can contact the relevant section in your workplace for information.
• If you have a personal pension, you should contact the pension provider who sold you the pension.

Getting financial advice

Getting financial advice is important when making financial decisions. Pensions can be complex and sometimes difficult to understand, so you must know what you are getting and ensure you have the right product for your needs.

When meeting your financial adviser, some questions to ask are:

• As of today, are my funds meeting my income goals for retirement?
• What level of risk am I taking with my pension today?
• Can I switch money to a different fund? If so, are there any charges to do so?
• Can I increase my contributions, or do I need to take out an alternative arrangement, such as a PRSA or AVC?
• Am I contributing the maximum amount that qualifies for tax relief?
• At what age can I draw down my pension?

Check that your financial adviser is regulated by the Central Bank of Ireland.