According to the Guardian, “Ireland used to have one of the highest rates of home ownership in the EU. But despite near full employment and record economic growth in recent years, just 66% of housing is owner-occupied now, down from 79% in 1991. Home ownership has collapsed particularly among younger generations and lower-income groups. Today, less than a third of 30-year-olds own their home.”
Why is this relevant?
Often referred to as Ireland’s pensions “timebomb”, the Public Finance Offices (PBO), said the pressure on the public finances will heighten over the coming years as the population ages and more people leave the workforce and become eligible for the State pension.
The Future is a Gamble
“Total spending on State pensions increased by 50% from 2012 to 2022 driven, primarily, by a 34.6% increase in recipients in the same period”. To compound these issues, it is expected that a large proportion of future pensioners will not be home owners and, coupled with inflation, this is sure to create a massive challenge for the Irish government and public finances.
What can you do?
Regardless of your age, the size of your pension pot or your current situation – we all look to our future retirement with a sense of optimism. The reality might be far from what you imagined however. If you have started a pension, you are already ahead of the curve in terms of your counterparts nationally. If you are looking to secure a mortgage and aim to own your home before retirement, that’s just another piece of the overall plan.
A Card Game of Sorts
Laying your cards out:
First of all, it’s worth understanding where you stand currently. What savings and investments do you have? What are your outgoings? Are there areas where you could be making savings? What protection do you have in place and are there ways to reduce the costs on this or other policies?
Go Fish:
Next it’s time to consider what you want when work becomes optional. Will you be working part time, taking up a new hobby, travelling the world or looking after grandkids? This is one of the toughest parts of the planning process sometimes – we have so many opportunities these days, that it’s really hard to narrow it down to what you would really like to do.
Hedging your bets:
While we all want the “dream” retirement, we always advise our clients to accept that even with the best plans, things (or Wild Cards), can crop up when we least expect them. With that in mind, it’s worth taking some financial advice so you are prepared for the worst, so you can look forward to the best. A financial adviser will look at your current situation, your hope for retirement and then raise some questions you might need to consider.
In life there are many variables and changes. Planning for retirement and protecting your financial future can seem like a daunting task. It involves forming expectations about income and expenses over the rest of your life, based on present assumptions. That’s why financial planning is so important. It places you in the best possible position to benefit from better outcomes.
When discussing future plans, we help clients look at their needs now and into the future. Whatever vision you have for the future, we work with you to create an easy to implement plan that you can action today and benefit from in the future.
Your Future, Planned, Protected and in Your Control
Lynx Financial Services has been helping clients to take control of their financial future for over 25 years. We work with individuals looking to maximise their investments to secure everything from mortgages and investments, to protection and pensions. If you need financial clarity control, we can help. We focus on the results, so you can get on with the important things and look forward to a secure and protected future. Get in touch today and start your journey. We don’t do jargon, just factual solutions that work to help our clients and their futures.
