Pensions are a great way to save for your retirement, but they can be complicated. In this post, we’ll answer the most frequently asked questions about pensions in Ireland.
What is a pension?

A pension is a retirement plan that you make during your working life. It’s an investment, and the money you put into it will grow over time.

When you start working for an employer, they may offer a pension scheme under which they will pay your contributions into their own fund or funds and provide benefits when you retire. A pension contract between the employee and employer sets out how much is paid into the fund(s) by each party and how this money will be invested by the provider of pensions (usually called an administrator).
Defined Contribution Pension

In a defined contribution pension, the employer contributes to your pension fund. You can choose how to invest your money, but it’s up to you to make sure there’s enough in there when it comes time for retirement.

The amount of money that goes into your fund is determined by:

The amount of each paycheck that goes toward paying for your own benefits (for example, if you’re paying $200 per month for health insurance through work).
How much additional money you contribute from each paycheck (if any). For example, if some months I want more cash in hand than others and decide not to put anything aside toward my 401(k), then those months will affect how much money I have saved over time because I’m missing out on interest earned by investing at least part of every check into my retirement account instead of spending it all on things like rent or food or travel expenses etcetera…