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Retirement is a phase in life which most people look forward to. And after years of hard work, most people imagine themselves living in a comfortable manner, at least at the level of comfort enjoyed prior to retirement. But will that be the case? It is an accWill my pension be enough? - Mario Farrugia
Retirement is a phase in life which most people look forward to. And after years of hard work, most people imagine themselves living in a comfortable manner, at least at the level of comfort enjoyed prior to retirement. But will that be the case? It is an accepted fact that a person will require at least two-thirds of pre-retirement income in order to maintain the same level of lifestyle upon retirement. While some might argue that old age would bring new additional costs, these will be largely offset by other costs that end upon retirement, mainly the end of bank loan repayments, which usually do not go beyond retirement age, as well as commuting costs, among others. However, not everyone will be eligible to receive two-thirds of their current income, mainly due to the fact that the State pension is capped. In fact, as at 2019, the maximum pensionable income stands at €24,194 for those born after 1962. This will provide a maximum State pension of €16,129. It therefore stands to reason that all those people earning more than €24,194 will be short of their two-thirds State pension. The higher their income, the higher the shortfall. Based on our accepted argument, a person earning... Read more
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