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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.

 

 

 

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  31. charlie bean
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  37. Ramsey Mike
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  38. Luis Root
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  39. Angelita Taylor
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  40. Tommy Champion
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  41. JOSE PEREZ
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  45. PergoCF@gmail.com
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  47. ghazi kanaan
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  48. Traci
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  52. Dr. García Álvarez
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  53. Josie Grealis
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  54. charlie
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  55. Mrs Patricia Kingsman
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  56. Mrs Patricia Kingsman
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  57. Mrs Patricia Kingsman
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  58. Mrs Patricia Kingsman
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  59. Patricia Kingsman loan company
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  60. Mrs Patricia Kingsman
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  61. Keat Cheng
    We are Ireland based major/Direct providers of Fresh Cut BG, SBLC, POF, MTN, Bonds and CDs and this financial instruments are specifically for lease and sale.We are one of the leading Financial instrument providers with offices all over Europe. we always deliver on time and precision as Set forth in the agreement. You are at liberty to engage our leased facilities into trade programs, project financing, Credit line enhancement, Corporate Loans (Business Start-up Loans or Business Expansion Loans), Equipment Procurement Loans (Industrial Equipment, Air crafts, Ships, etc.) as well as other financial instruments issued from AAA Rated bank such as HSBC Bank Hong Kong, HSBC Bank London, Deutsche Bank AG Frankfurt, Barclays Bank , Standard Chartered Bank and others on lease at the lowest available rates depending on the face value of the instrument needed, Our Terms and Conditions are reasonable. DESCRIPTION OF INSTRUMENTS: 1. Instrument: Bank Guarantee (BG)/SBLC (Appendix A) 2. Total Face Value: 10M MIN to 50B MAX USD or Euro 3. Issuing Bank: HSBC, Deutsche Bank Frankfurt, UBS or any Top 25 . 4. Age: One Year, One Day 5. Leasing Price: 4+ 1% 6. Sale Price: 32+2% 7. Delivery by SWIFT . 8. Payment: MT103-23 9. Hard Copy: Bonded Courier within 7 banking days. If you have need for Corporate loans, International project funding, etc. or if you have a client that requires funding for his project or business, We are also affiliated with lenders who specialize on funding against financial instruments, such as BG, SBLC, POF or MTN, we fund 100% of the face value of the financial instrument. Inquiries from agents/ brokers/ intermediaries are also welcomed; do get back to us if you are interested in any of our services and for quality service. Name : Keat Cheng E-mail : keatcheng2@gmail.com Skype id :keatcheng2@gmail.com
  62. brenna
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  63. Heather Patrick
    NOW A PROPERTY OWNER WITH THE HELP OF PROSPER LOAN: prosperloanfirm@yahoo.com Share this to help a soul right now, Ya'll will agree with me that the rate of online scamming is increasing by the day. I'm also a victim of it as i was scammed about 25,000usd all in the quest of seeking for an home loan. I actually gave up until a government official directed me to PROSPER LOAN FIRM, Despite the fact of my plight i had to give it a try since it was coming from a top government official. All comment ya'all see online are crap, I know the pains i went through just because i was looking for a loan i had to keep on selling valuables to keep paying unforeseen fees. I and some great personality have started a movement to end online scam because people are dying everyday, losing their homes, selling their property just because they need a loan. Apart from been a beneficiary of about 295,000usd in PROSPER LOAN FIRM lending scheme , We have also made a research to see that they are the best around the globe as far as online lending is concern, They have proven their self trustworthy and reliable back to back without failing. To end people debt, financial burden and been victimized here is the details of prosper loan firm. Email: prosperloanfirm@yahoo.com OR call +1(816) 366-8769 to put an end to your financial needs now. I'm Heather Patrick from Georgia, United States. It doesn't take you anything to share this great information and good news. Email: prosperloanfirm@yahoo.com OR call +1(816) 366-8769 and celebrate victory for the rest of your life.
  64. CAPITAL CITY
    CAPITAL CITY: Our company operates an interactive network which is currently at above 47 million online Loan applicants. Please let me know your requirement to apply for loan, with 2% interest rate. So I can provide you solution accordingly. Whatsapp : +1 862-621-9274 Email: capitalcityloan@live.com Mobile: +1 951-366-0152 Best Regards, Andrew
  65. Arik Fly
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  66. Dr. Bentley Grants
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  67. Mrs Rose Williams
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  68. Helen Troung
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  69. MIRACLESPELLHOME@YAHOO.COM
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  70. Annie Joe
    HOW I BECAME A VICTOR AFTER SO MANY FAILED ATTEMPT OF GETTING A LOAN. I feel so blessed and fulfilled. I've been reluctant in applying for a loan i heard about online because everything seems too good to be true, but i was convinced & shocked when my friend at my place of work got a loan from Progresive Loan INC. & we both confirmed it and i also went ahead to apply, today am a proud owner of my company and making money for my family and a happy mom. Well i'm Annie Joe by name from Pauls Valley, Oklahoma. As a single mom with three kids it was hard to get a job that could take care of me and my kids and I had so much bills to pay and to make it worst I had bad credit so i couldn't obtain a loan from any bank. I had an ideal to start a business as an hair stylist but had no capital to start, Tried all type of banks but didn't work out until I was referred by my co-worker to a godsent lender advertising to give a loan at 2% interest rate. I sent them a mail using their official email address (progresiveloan@yahoo.com) and I got a reply immediately and my loan was approved, and I was directed to the Bank site where I withdrawed my loan directly to my account. To cut the story short am proud of my hair stylist company and promise to testify to the world how my life was transformed.. If you are in need of any kind of loan, i advise you contact Progresive Loan INC and be financially lifted Email: progresiveloan@yahoo.com OR Call/Text +1(603) 786-7565
  71. Dr Robin Christopher
    Hello Am Dr. Robin Christopher Am Legitimate and reliable Loan lender. I offer all kinds of packages of Loans. I give out loans on a clear and understandable terms and conditions at 2% interest rate. From $5000 to $6000000 USD, Euro And Pounds Only. We give out Business Loans, Personal Loans, Student Loans,Car Loans, Bank Loans And Loans To Pay Off Bills. If interested kindly Contact us: chrisrobinloan002@gmail.com Or +16786034651
  72. MIRACLESPELLHOME@YAHOO.COM
    I was checking for solution in the internet then miraculously came Across Dr Miracle, the powerful herbalist that Cure Numerous individuals HSV-1 AND HSV-2 INFECTION,then i contacted his Email: (MIRACLESPELLHOME@YAHOO.COM) I Explained everything to him and prepared a cure that cure my HSV-1 AND HSV-2 Disease totally after receiving his Herbal medicine, So My friends viewers why wait and be suffer when there is someone like Dr Miracle,that can cure any disease HIV/ CANCER/ HEPATITIS B VIRUS, You Can "CONTACT Via : Email : (MIRACLESPELLHOME@YAHOO.COM) You Can Contact Him Today And Get Your Problem Solved,,,, Or"Call +2348071398555.."
  73. Heather Patrick
    LIBERATED FROM DEBT, NOW PROPERTIES OWNER WITH THE HELP OF PROSPER LOAN: prosperloanfirm@yahoo.com Share this to help a soul right now, Ya'll will agree with me that the rate of online scamming is increasing by the day. I'm also a victim of it as i was scammed about 25,000usd all in the quest of seeking for an home loan. I actually gave up until a government official directed me to PROSPER LOAN FIRM, Despite the fact of my plight i had to give it a try since it was coming from a top government official. All comment ya'all see online are crap, I know the pains i went through just because i was looking for a loan i had to keep on selling valuables to keep paying unforeseen fees. I and some great personality have started a movement to end online scam because people are dying everyday, losing their homes, selling their property just because they need a loan. Apart from been a beneficiary of about 295,000usd in PROSPER LOAN FIRM lending scheme , We have also made a research to see that they are the best around the globe as far as online lending is concern, They have proven their self trustworthy and reliable back to back without failing. To end people debt, financial burden and been victimized here is the details of prosper loan firm. Email: prosperloanfirm@yahoo.com OR call +1(816) 366-8769 to put an end to your financial needs now. I'm Heather Patrick from Georgia, United States. It doesn't take you anything to share this great information and good news. Email: prosperloanfirm@yahoo.com OR call +1(816) 366-8769 and celebrate financial outbreak for the rest of your life.
  74. Mr Refael Luciano
    Good Day Everyone Are you a business man or woman? Are you in any financial mess or Do you need funds to start up your own business? Do you need a loan to start a nice Small Scale and medium business? Do you have a low credit score and you are finding it hard to obtain capital loan from local banks and other financial institutes?. Interested applicants should Contact us via Email: refaellucianoloanhome2012@gmail.com or call +1-612-268-3020 or +1-619-492-9856 Our loans are well insured for maximum security is our priority, Our leading goal is to help you get the services you deserve, Our program is the quickest way to get what you need in a snap. Reduce your payments to ease the strain on your monthly expenses. Gain flexibility with which you can use for any purpose from vacations, to education, to unique purchases. Interested applicants should Contact us via Email: refaellucianoloanhome2012@gmail.com or call +1-619-492-9856 or +1-619-492-9856. We offer the following types of loans: * Car Loan * Home Loan * Mortgage Loan * Investment Loan * Commercial Loan * Construction Loan * Debt Consolidation Loan * Business Loan [secure and unsecured] * Personal Loan [secure and unsecured] * Student Loan and so many more. We offer a wide range of financial services which includes: Business Planning, Commercial and Development Finance, Properties and Mortgages, Debt Consolidation Loans, Business Loans, Private loans, Home Refinancing Loans with low interest rate at 2% per annul for individuals, companies and corporate bodies. Get the best for your family and own your dream home as well with our General Loan scheme. Interested applicants should Contact us via Email:refaellucianoloanhome2012@gmail.com or call +1-612-268-3020 or +1-619-492-9856. WE OFFER ALL KIND OF LOANS - APPLY FOR AFFORDABLE LOANS
  75. SuiteCapitals@gmail.com
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  76. Cheerful Loan financier
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  79. SuiteCapitals@gmail.com
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  81. Mr Refael
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  96. nelly
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