Login

Money Times - July 18, 2017

Posted by Jill Kerby on July 18 2017 @ 09:00

SAVINGS FUND OR PENSION FUND: THERE’S ONLY ONE WINNER

 

Are you a saver or a spender?

In Ireland today, the answer to this question is pretty obvious and it’s based very much on what age you are.

The young – 15-24 year olds, may indeed still have a post office or bank savings account, but this age group are big spenders, often of their parent’s money, as well as their own part time incomes or their first wages once they leave school or college.

Rent and repaying education debt is taking a bigger chunk out of the disposable income of the 24-35 year old age cohort, but while many attempt to save for their first home (especially those who move back in with their parents) their spending pattern is very different from previous generations. They increasingly prefer to spend on lifestyle ‘experiences’ (travel, career change) than what were considered lifestyle ‘essentials’ like car and home ownership. like an expensive motorcar, and starter home full of expensive home electronics. They live increasingly ‘virtual’ lives through new technology.

By the time the mid to late 30s come along, spending turns into serious debt. The 35-50 year olds are now supporting a mortgage, car, childcare costs on flat incomes and higher taxes. While they may aim to have rainy day and education savings fund in place, fewer than half of all Irish employees (outside of mandatory PRSI contributions) continue to an employment based retirement funds. Pension coverage (outside the public sector) continues to fall.

The big savers in Ireland continue to be older people in the over 55 age group who no longer have the high lifestyle costs they did 20 years earlier and are very conscious of their looming retirement.

Yet according to recent research by Irish Life, just under two thirds of Irish adults (64%) say they are actively saving and have some savings, However, of the other third, they claim to have no savings at all, and say they cannot afford to save.

The Irish Life research found that saving levels were higher among women (67%) than men (59%), and people over 55 years were saving the most.

Of those that are saving, 43% of people are saving over €100 a month, and people living in Dublin were found to be saving the most: 18% between €20 and €50 a month, with another 18% saving between €51 and €100 a month.

And while even this level of saving is to be commended, given the rising costs of housing, education and healthcare and many years of stagnant wages and state pension benefits, the return from conventional savings like deposit accounts and post office investments continues to fall. 

Demand deposit account returns, according to the comparison website bonkers.ie  now range from absolutely nothing from Bank of Ireland to 0.05% from KBC Bank.  Internet only demand accounts get a fraction more interest but to achieve even 1% interest you need to commit at least €5,000 for about five years (PTSB).  The irony is that even these puny returns are subject to 39% deposit interest tax (DIRT) unless you are over age 65 and your total income is below the tax-exempt limit for a pensioner, that is, €18,000 for an individual and €36,000 for a married couple.

Finding a safe and profitable place for savings is the great financial dilemma of our times and in a country with a rapidly ageing population and a large debt overhang from the 2008 crash.

Meanwhile, the Irish Life research found that only a third of Irish employees belong to a company pension fund, and only 25% of all Irish workers have a private pension. Generous tax relief means that every €100 saved into a pension costs only €80 for standard rate (20%) taxpayers and just €60 for marginal 40% taxpayers and many companies offer matching contributions “which can mean up to €200 into [the workers’] pension fund, for a cost of €80 or €60 to the employee based on their contribution of €100,” says the insurer.

Pensions are a hard sell, but 42% of the respondents to this Irish Life survey admitted that they could afford to save between €80-€100 a month.  Yet the majority (70%) of 20-something workers decline to join their company pension scheme, a 2014 Mercer report found in 2014.

Convincing young people to forego some spending today in order to secure a comfortable retirement four decades away is probably an even tougher task.

But the message from this research is stark and sound:  your contributions attract tax relief and any growth achieved in your fund is entirely tax-free until retirement. Leaving money in the bank is a long term loss maker.

 

 

PORTFOLIOMETRIX IRELAND…a new era of personalized investment portfolios

14 Fitzwilliam Square Dublin 2  +353 1 539 7244   info@portfoliometrix.ie

Fermat Point Limited, trading as PortfolioMetrix Ireland, is regulated by the Central Bank of Ireland.

 

 

 

8 comment(s)

  1. Harvey Lee
    I Never Beleived in Chester Brian Loan Company Until now.....(Brianloancompany@yahoo.com) Hello All, I was really so downcast after losing so much and facing financial difficulties, no one to help me and all i could do was to just seat and watch my business going down and almost losing my son to an illness. But never the less i meet an old college mate who told me about the loan he got from Chester Brian Loan Company and until now the company have assisted so many of his friends seeking a loan. So i told him that getting a loan any more is not my style because of the disappointment from my bank and other loan company i trusted but he insisted i apply for it and now i can now boost of restoring my company back to its full glory. i will keep on testifying on behalf of Chester Brain Loan because they have made me to be a man again. So if interested in acquiring a loan of any kind email them today via: {Brianloancompany@yahoo.com } OR text (803) 373-2162 .Am Harvey Lee from United States of America.
  2. Harvey Lee
    I Never Beleived in Chester Brian Loan Company Until now.....(Brianloancompany@yahoo.com) Hello All, I was really so downcast after losing so much and facing financial difficulties, no one to help me and all i could do was to just seat and watch my business going down and almost losing my son to an illness. But never the less i meet an old college mate who told me about the loan he got from Chester Brian Loan Company and until now the company have assisted so many of his friends seeking a loan. So i told him that getting a loan any more is not my style because of the disappointment from my bank and other loan company i trusted but he insisted i apply for it and now i can now boost of restoring my company back to its full glory. i will keep on testifying on behalf of Chester Brain Loan because they have made me to be a man again. So if interested in acquiring a loan of any kind email them today via: {Brianloancompany@yahoo.com } OR text (803) 373-2162 .Am Harvey Lee from United States of America.
  3. Moore robbinson
    ATTENTION: Loan Offer By Robbinson Moore Loans I am a private lender, I offer loan at 2% interest rate, we are ready to help you out in any financial problem. Do you need an urgent loan? are you in debt? do you need urgent loan to finance your business?, have you been denied by your bank? worry no more our Services are Quick, Easy & Secure in whatever circumstances. Borrow up to $2,000 - $10,000,000 Today, We are a company willing to give you loan with Affordable interest rate at 2%, We offer loans to individuals, private Companies, firms, and all kinds of company organizations, Including real estate investors. We are certified, Registered and legitimate creditors. Contact us with loan information at this email:{mooreloancompany@yahoo.com}
  4. Margaret Loughrey
    I go by the name Margaret Loughrey, Am from U.S.A. I won ($41.9 Million Dollars) in the EuroMillions jackpot, I took an advice from some person who talked about this great spell caster called Dr Iyaryi the person placed a testimonies on a blog saying how Dr Iyaryi helped him win the lottery by sending him the winning number i was curious and i thought it was all joke not until i contacted this spell caster to know for myself how this work cause i have spend a lot buying tickets and i never win. I contacted him and he told me the necessary thing that need to be done and i did it and he told me to wait for 3days and truly he gave me the winning numbers to play the lottery which i did, Can you believe my name was the first among winners. He told me (my son all i need you to do for me is make sure that you share this testimonies to others so that they can also win the lottery cause i do not have much time to spell on the internet) so that is why i am sharing this testimony with you that if you want to win the lottery this is the way online tips can not help you driayaryi2012@hotmail.com is the only answer to that your problem of winning the lottery contact him for your winning numbers driayaryi2012@hotmail.com And also Reach him on WhatsApp Number: +2349057915709 Thanks Dr. Iyaryi
  5. Mrs.Emilia Fedorcakova
    Attention! Attention!! Attention!!!, *Debt Consolidation Loans *Business Loans *Personal Loans *Home Loans *Car Finance *Commercial Loans *Investments Loans *Debts Consolidation *Business Planning *Commercial Development Finance *Properties Mortgages *Bad credit loans *commercial loans *Start-up- working capital loans *Construction loans *Car loans, *Hotel loans*Student loans We awaits your urgent your urgent reply via Email: (bdsfn.com@gmail.com) - Complete Name: - Loan amount needed: - Loan Duration: - Purpose of loan: - City / Country: - Telephone: - How Did You Hear About Us: CONTACT EMAIL: bdsfn.com@gmail.com CONTACT EMAIL: anatiliatextileltd@gmail.com What is your situation? *Need 100% financing *Can't verify income *Can't verify employment *Recently self-employed *Bankruptcy Collections *Credit issues *Accumulated Bills Settlement * Personal Investment Project or Company Investment Projects e.t.c. Apply for a quick and convenient loan to pay off bills and debts, start a new business or refinance your projects and expand your business in this year 2013 at the cheapest interest rate of 1%. For more details email us today via email:bdsfn.com@gmail.com We awaits your urgent your urgent reply via Email: (bdsfn.com@gmail.com) - Complete Name: - Loan amount needed: - Loan Duration: - Purpose of loan: - City / Country: - Telephone: - How Did You Hear About Us: CONTACT EMAIL: bdsfn.com@gmail.com CONTACT EMAIL: anatiliatextileltd@gmail.com Mrs.Emilia Fedorcakova
  6. JASON GREY
    Hello friends, my name is JASON GREY from UK, I want to share the secret and story of my wealth to the general public today because I want to use this opportunity to help and reach out to the youths, young men and women of UK and all over the world, who are experiencing financial difficulties and problems and as a result of this end up in committing various kinds of crimes like robbery and drugs and even end up in suicide or wasting up their lives, as you read my story and follow my instructions all your financial problems and difficulties will come to an end today. I was very poor and could barely feed, I did all sort of hard labors and hard jobs just to earn a living, my mate laughed at me and life was so miserable and at a point I taught of committing suicide, until one faithful day I saw and read a post on the internet about the INDIA CHURCH OF MAGIC, also called SOLUTION TEMPLE. I contacted them and told them all my problems in life and they told me not to worry at all that all is fine and that all my difficulties are over, I still doubted because I have heard stories about people being scammed on the internet but I gave them all my trust because life without money is as good as being dead, I would rather die than to remain poor, I was born poor but I will not die poor because I am determined to be rich and at that point of my life I would do anything just to become successful and I gave them all my trust. They cast a wealth spell for me and up till this moment I don't know how I became so rich because money began to flow and also fame came, as I write now I don't only have money but I meet and discuss with the top politicians here in India because most of them are also doing this to make money. Do you desire to become wealthy today and to become very famous and popular, then this is your opportunity, contact the INDIA CHURCH OF MAGIC TODAY on...... churchofmagic1@gmail.com you can also visit the website of the INDIA CHURCH OF MAGIC on http://churchofmagicindia.simplesite.com/ 1 .DO YOU WANT YOUR BUSINESS TO GROW FAST? 2. DO YOU WANT TO BECOME RICH? 3. DO YOU WANT FAME? 4. DO YOU SEEK WEALTH? 5. DO YOU WANT TO PUT AN END TO YOU FINANCIAL PROBLEMS? 6 DO YOU WANT TO CLEAR ALL YOUR DEBTS OR LOANS? 7. DO YOU WANT TO GET MARRIED? 8. DO YOU WANT TO GET YOUR LOVER BACK? 9. DO YOU WANT TO CHECK AND VERIFY ONLINE LOVERS OR LOANS OR ANY DOUBT IN YOUR LIFE? 10. DO YOU SEEK PROTECTION FROM YOUR ENEMIES AND THE EVIL ONES 11. DO YOU WANT TO GET CURED OF ANY ILLNESS, SICKNESS OR DISEASES 12. DO YOU WANT TO TOP DIVORCE Then don't fail to contact the INDIA CHURCH OF MAGIC on the details below if you have any problems or difficulties at all in your life, am sure they will help you. Email: churchofmagic1@gmail.com Website: http://churchofmagicindia.simplesite.com/
  7. Dr. Vasquez Reynolds
    DO YOU NEED AN AFFORDABLE BUSINESS LOAN OR XMAS LOAN TODAY? We have provided over $20 Billion in business loans to over 30,000 business owners just like you. We use our own designated risk technology to provide you with the right business loan so you can grow your business. Our services are fast and reliable, loans are approved within 24 hours of successful application. We offer loans from a minimum range of $10,000 to a maximum of $1 Billion. Do you find yourself in a bit of trouble with unpaid bills and don’t know which way to go or where to turn? What about finding a reputable Debt Consolidation firm that can assist you in reducing monthly installment so that you will have affordable repayment options as well as room to breathe when it comes to the end of the month and bills need to get paid? Dr. Vasquez Reynolds Loan Home is the answer. Reduce your payments to ease the strain on your monthly expenses. Email (vasquezreynoldsloanhome@gmail.com) Our services include the following: *Truck Loans * Personal Loans * Debt consolidation loans * Car Loans * Business Loans * Education Loans * Mortgage *Refinancing Loans * Home Loans We give you loan with a low interest rate of 2% and loan duration of 1 to 30 years to pay back the loan (secure and unsecured). Do not keep your financial problems to yourself in order for you not to be debt master or financial stress up NOTE:Bear in mind that it will only take less than 24 Hours to process your file is 100% Guaranteed no matter your Credit Score.We are certified and your privacy is 100% safe with us. Worry no more about your loans or finances. Yours Sincerely, Dr. Vasquez Reynolds +1 (619)473-5227 Get your instant loan approval
  8. Teri McCary
    Hello Every One! I’m Teri McCary from LA, I am very happy to receive a loan from the European part of the world, They gave me an X-mas Loan, They also saved me from loosing my house. this message might be of help to you guys that also need a loan in other not to go the wrong side in your search you have to contact this company Libero Loans . Via E_mail: liberoloans@gmail.com Regards.
Leave a comment
 

Subscribe to Blog