Life assurance companies and investment firms are the main providers of pensions in Ireland. They employ fund managers to invest your contributions in one or more pension funds.
These funds are used to buy and sell assets, such as shares, property, bonds and cash. There are many types of pension funds and each fund is invested in a different mix of these types of assets.
For Example, a typical pension fund might have
- 50% of the assets invested in shares
- 30% of the assets invested in bonds
- 15% of the assets invested in property
- 5% of the assets are held as cash
The value of the fund rises and falls, depending on the performance of the shares, property and other assets in which it invests. The fund is expected to grow by a certain amount each year but this is not guaranteed as fund values go up and down over the years. The value of your fund will be reduced by any fees and charges you have to pay.Your pension fund is a long term investment that you should ideally keep for 20 to 30 years or longer. This gives enough time for your fund to recover growth if it falls in value. Generally, the longer you keep the contributions invested, the more likely your fund will grow in value.
We would welcome the opportunity to help tailor a retirement plan to specifically to suit your future needs.