Get Your Back Up Plan: Your Financial Planning Questions Answered

When it comes to financial planning, we all have our excuses for putting it off. Most of us think we will get around to it eventually, but the reality is, the earlier you put a financial plan in place the better off you’ll be in the long run. Unsure where to start? Read on for our answers to some of the most common financial planning questions.

How can financial planning help me?

How do you want to spend your retirement? Travelling to the exotic holiday destinations you always dreamed of? Or simply enjoying your life without worrying about everyday expenses? When you consider that the state pension is currently just € 12,132 per year, you’ll realise that it’s crucial to have some additional income if you want to maintain a comfortable lifestyle into retirement.

Having a solid financial plan can not only help to fund your post-retirement life it can also help make your money work harder to go towards your children’s education, and give you peace of mind that you and your family are protected against life’s uncertainties including serious illness.

How Much Should I Be Saving?

There’s a very simple method for deciding how much you should save – the 50/30/20 rule. Put simply, this means 50% of your income should go necessities, 30% should go to discretionary spending, and 20% should go towards your savings. Stick to this rule and your savings will be in great shape in no time.

How Can I Decide on a Savings Goal?

Any financial plan has to start with a budget, but many people are intimidated by the thought of dealing with lots of numbers and fiddly spreadsheets. AIB’s Family Finance Budgeting Tool is a simple way to get a clear picture of your family spending. Through the use of colour coded charts, you can see what proportion of your spending is going where, and put a solid plan in place to whip your budget into shape.

How Can I Keep Track of My Finances?

Keeping track of your finances is vital to make sure you stay on track with future financial planning. With AIB’s My Money Manager tool, available via Internet Banking and Tablet Banking, you can automatically group your spending into various categories, showing exactly where you spend your money and where you need to cut back. When listing your spending, make sure to be realistic. It’s no use putting down that you spend €100 a week on groceries when you actually spend €200. By making the details as accurate as possible, you’ll get a better picture of where you are and where you need to be.

How Can I Prepare for the Unexpected?

Most of us don’t like to think about illness or death, but the reality is that tragedy can strike when you least expect it. Thankfully, AIB has a range of Life Insurance options that will give you and your family peace of mind - whatever happens. With our easy-to-use Life Insurance Calculator, you can enter a few details about your income, outgoings, and dependents and get a quote right away.

Where Do I Start with Investment?

You don’t have to be a billionaire to reap the benefits of investment. Even if you’re starting with a relatively small amount of money, we can help you choose the right investment products to make your money work harder for you. Of course with any type of investment there is an element of risk involved, but you’ll also have a much better chance of getting a higher return than with an ordinary savings account. Our expert financial advisors will be happy to take you through the range of options we offer - with no jargon and no pressure.

When Should I Start Planning for Retirement?

It’s never too early! The sooner you start planning a pension, the more comfortable you’ll be when you retire. At your financial planning review, we’ll give you a personalised retirement consultation for absolutely no charge. We’ll also provide a post-review report giving you a plan to help you meet short and long-term goals, and get you on track for the ‘round the world trip of your dreams.

Need Help With Financial Planning?

If you need help with any aspect of financial planning, the free AIB financial planning service is available through our branch network and over the phone. Appointments can be made online, in branch or by phone. The service is confidential with no obligation or cost and takes approximately 45-60 minutes. You can also ask us any questions on Twitter @AskAIB or Facebook.

Allied Irish Banks, p.l.c. is tied to Irish Life Assurance plc for life and pensions business. Irish Life Assurance plc is regulated by the Central Bank of Ireland. Allied Irish Banks, p.l.c. is regulated by the Central Bank of Ireland. Copyright Allied Irish Banks, p.l.c. 1995.