It’s a question many people don’t ask until it’s too late — and one that countless Irish savers now wish they’d considered sooner. What age should you start saving for a pension?
A nationwide survey revealed that 48% of pension holders regret not starting their pension earlier, while many wish they had contributed more over the years. And they’re not alone — more than 1 in 5 Irish adults admit they don’t have any private pension at all, relying solely on the State pension.
These figures highlight a concerning gap in retirement readiness across the country and reflect a common theme: many people simply don’t realise how important it is to start early — until it’s too late.
So, what is the best age to start?
What age should you start saving for a pension – Ideally, as soon as you begin earning, which is typically in your 20s or early 30s. Why? Because the earlier you start saving, the more time your pension has to grow through the power of compound interest.
For example:
Saving just €200 per month from age 25 could lead to a pension pot that’s more than double that of someone who starts at 40, even if both contribute the same monthly amount.
But it’s not just about growth — pension contributions in Ireland also benefit from generous tax relief, which means you’re saving for your future while reducing your income tax bill today.
Despite these benefits, financial literacy remains a major barrier. According to the survey, 30% of pension holders didn’t realise the value of early contributions, and half of those surveyed blamed a lack of understanding for their delayed start.
Delays in auto-enrolment are adding to the problem.
The Irish Government has long planned to roll out an auto-enrolment pension scheme to cover the 800,000 workers who currently don’t have access to an occupational or private pension. However, that scheme has now been delayed again, with Public Expenditure Minister Jack Chambers confirming that the planned September 2025 start date is unlikely to be met.
This delay is significant. According to the survey, 70% of people believe the Government should provide financial advice before the scheme begins, underlining the need for clearer communication and support for those unfamiliar with pensions.
Industry voices, including the Irish Congress of Trade Unions, have expressed frustration with the delay — particularly as it compounds other recent policy rollbacks affecting workers.
What happens if you start a pension later in life?
It’s never too late to start — but starting in your 40s or 50s means you’ll likely need to save more aggressively to reach your retirement goals.
If you’re starting late, here’s what you can do:
- Maximise your contributions: Older age groups can contribute a higher % of earnings with tax relief.
- Get professional advice: An advisor can help you make the most of the time you have left.
- Act quickly: The sooner you start, the more you can still benefit from compound growth and tax savings.
The earlier, the easier
Starting early allows you to:
- Spread contributions over more years
- Benefit from investment growth and tax relief
- Build flexibility into your retirement planning
- Avoid stress and financial pressure later in life
You shouldn’t wait for auto-enrolment. Now is the time to act.
The delays in auto-enrolment highlight just how important it is to take personal responsibility for your pension. Whether you’re in your 20s, 30s, or catching up in your 40s or 50s, the best time to start saving for retirement is now.
At LHK Group, our experienced advisors can help you understand your options and create a personalised pension plan that works for your goals — no matter what age you start. Learn more here.
Get in touch today on (01) 2055 600 and take the first step toward a more secure financial future.
Linkedin
