It seems as if the Irish working population do not like <a target=”_blank” href=”http://www.quinn-life.com/quinnlife_pensions_personal.html”/>pensions</a>.  With roughly half the workforce opting to do without a Personal or Occupational Pension, the figures speak for themselves.

Perhaps these figures are not unsurprising; pensions often receive bad press. And now, when it comes to people saving for their retirement, pensions in Ireland have to compete with property investments. A massive 43% of the population believe that property will be the major source of contributions towards their retirement income.

Could this be that half of the workforce are hedging their bets?  What are the problems with relying on property, without the support of a pension?

Many people will think that property is a good investment because house prices have soared over recent decades. But, as the credit crunch has proven, property prices also deplete. With financial institutes forecasting a continuing slide in prices over the next decade, the property market is becoming less viable as a source of retirement income.

Another problem exists too; when you rely on your retirement income from a single source, it is hard to spread the risks. Property is one industry of many, so even if you manage to build a portfolio of properties, such as investing in multiple buy-to-let properties, you will still be dealing with a single industry, if house prices fall, then all of your retirement income diminishes too.

Compare this to a Personal Pension plan, in which contributions are invested in a wide range of assets such as stock/shares, bonds, and cash etc.., the Personal Pension plan begins to look like a much more reliable investment.

With property, you never know what the projected costs will be. There are the standard charges that you will encounter; stamp duty and legal fees, for example. But you will also need to set money aside for repairs, maintenance, and the covering of rent if the property stands empty- and these costs are unpredictable.

Although, you will not necessarily know the projected growth of your Personal Pension, you will be able to estimate, with greater accuracy, the amount of money on which you will be retiring.

Pensions may seem less interesting, but the tax breaks and the range of investments more than make up for that. Plus, in order to get started in the property market, you need to have a substantial amount of money behind you. Whereas, with a Personal Pension, you will need a minimal amount and can build your nest-egg slowly over time. You can start a Personal Pension with anything as small as €50 per month.

There is nothing wrong with investing in property, but it should only ever be considered as one means of providing for your retirement. A Personal Pension plan should be your first port of call; after all, they are specifically designed to provide you with a retirement income, unlike property, which can be hit-or-miss.

Rochelle Martinez, Freelance Web Content Article Writer for three years. Some of her articles are about http://www.quinn-life.com

Article Source:http://www.articlesbase.com/insurance-articles/pension-vs-property-1174006.html