Welcome to the first Financial Column of 2016. The Financial Column appears every Monday on Boyletoday.com and is published in association with MoneyPlus, Bridge Street, Boyle.
Q. I was clearing out my files over the holidays and discovered paperwork relating to an old Pension Policy which I held some time ago. I stopped paying into it when I lost my job in 2008. I was paying in €85 per month up to that point. Can I start paying into it again or have I lost everything I paid in for the five years.
A. It is almost certain that this pension policy has been stopped or made “paid up”. This means that you can’t start making contributions to this particular policy again. When a person stops paying into a pension policy, then after a period of 12 months the policy is usually closed or made “paid up”.
However you can take out a new pension policy with your existing or an alternative pension provider. Given that 7 years have passed since you were in a position to make contributions to your retirement fund I would encourage you to start a new pension policy as soon as possible.
The good news is that you have not lost the contributions which you paid into this old policy. You still retain ownership of this policy and it’s value. This value will change depending on the performance of the investments it is invested in, the amount of risk involved, and the charging structure.
As a result it would be important to review this with your financial adviser on a regular basis, at least annually, to ensure that the investment fund or funds used are consistent with your objectives and attitude to risk.
If you do not currently have an independent financial adviser Belinda McCauley at Money Plus would be delighted to assist and advise you both in terms of reviewing your existing policy and in establishing a new pension policy. Belinda’s contact details are : 086-7847827/071-9194000 or email: [email protected]
Boyletoday.com/MoneyPlus accept no responsibility for any decisions taken as a result of advice provided in this column. A reliable recommendation can only be made following a full detailed consultation taking an individual particular circumstances into consideration