Myth: I’ve left it too late to start a pension

It’s never too late to start saving for your future. While starting early has its benefits, starting later in life doesn't mean you're out of options. No matter what stage you are in life, by starting a pension you are in a better position to take control of your financial future.

It’s important to consider what you will live off when you retire, and if relying on the State pension, will it be enough? If the State pension isn’t going to sustain you and give you the lifestyle you want in retirement, starting a pension now can give you that peace of mind. The best time to start a pension was years ago, but the second-best time is now.

Tax benefits

There is no such thing as being 'too young' or ‘too old’ for pension planning and one of the major benefits of contributing to a pension is tax-efficiency. The contributions you make to your pension fund are not taxed. Basically, money that would have gone to the tax authorities is instead working for you, helping to grow your pension pot.

For example, if you’re on the standard rate of income tax (20%), every €100 you contribute to your pension could cost you just €80 after tax relief. If you're on the higher rate (40%), it could cost you even less, just €60 for every €100 you contribute.

The tax benefits of pensions mean you get tax relief on contributions, tax-free growth during the lifetime of the pension policy, and a percentage of your fund can be taken as a tax-free lump sum at retirement.

You might think, I can’t save much right now, so what's the point? But even small contributions can grow significantly over time. Pension planning is not just about securing an income; it’s about peace of mind and ensuring you can enjoy life post-retirement.

Pensions to suit all lifestyles

Regardless of your age or how much you can afford to contribute to your pension, by starting now, you have a better chance of a more fulfilling retirement. People are working for longer so you might have more time than you think to contribute to your pension and compounding can still have a positive effect if you start today versus next year. 

Zurich has pensions to match every lifestyle. Whether you’re a young professional just starting out, a company director, a self-employed person, or someone later in life, Zurich offers options that cater to everyone.

Setting up a pension can seem challenging, but it doesn’t have to be and once you start one, it’s set up and can be working away in the background. Flexibility is also key and the good thing about pensions is that they can be amended based on your circumstances.

Speaking to an experienced financial planner in Zurich or a financial broker, can help guide you through the world of pensions. There's a pension out there for everyone. The key is getting the correct financial advice because the choices you make today can significantly shape your future.

Pension planning

It's never too late to take control of your financial future. So, choose a pension that can give you the retirement you deserve. Get in touch with a Zurich financial advisor or find a local financial advisor near you with the Zurich Advisor Finder to talk about your options for starting a pension. With a wide range of options, control and flexibility, you can choose a pension plan that’s right for you.

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The information contained herein is based on Zurich Life’s understanding of current Revenue practice as at September 2024 and may change in the future.

This publication has been prepared for general guidance on matters of interest only and does not constitute professional advice. You should not act upon the information contained in this publication without obtaining specific professional advice.

Sources:

₁Investment Excellence Award, Brokers Ireland, 2014, 2015, 2016, 2017, 2018, 2019, 2021, 2022, 2023. No awards held in 2020. Pension Provider Excellence Award, Brokers Ireland, 2023, 2022. Fund Management Company of the Year 2023 Award, Business and Finance Financial Services Awards. Life Assurance and Pensions of the Year, InBUSINESS Recognition Awards, 2024.

₂Zurich, 30th June 2024.