Myth: I can’t save for a house and start a pension at the same time

Although it might seem challenging to save for a house and a pension simultaneously, you can do both. There is no reason why you can’t have multiple savings goals, and with careful planning and a balanced approach, you could save for a house while at the same time be putting money into your pension pot.

If you want to save for a house and still have money left to start saving into your pension, creating a budget is the most effective way to get started. This article has lots of tips that will help you budget and get on track with your savings goals. 

Once you have a clearer idea of your budget, determine how much you can allocate to both your house fund and pension savings each month. When it comes to saving for a house, decide how much you need to save for your house deposit and establish a timeline for when you want to achieve this goal.

Now looking at your pension, look again at your budget and see how much you have each month to save into your pension.

How much should you save into your pension?

How much you save into your pension is entirely up to you. With Zurich, our pension plans are flexible so you can start and stop as you need to. What kind of lifestyle you would like in retirement and how much you can afford to save are the two main factors to consider.  A simple way to check how much you should save is to use our Pension Calculator.

You might think you’ll wait to start a pension once you have bought your own home. But pensions are flexible, so don't let anything stop you from setting one up, because starting a pension early will make a significant difference in your retirement. The earlier you start saving, the more time your money has to grow through the power of compounding. Even small contributions now can make a huge difference in the future.

Starting a pension

Often the only barrier or difficulty people have with a pension, is setting one up in the first place. There is often a misconception that pension contributions require large sums of money. But in reality, even small, regular contributions can make a significant impact over time, and once set up, you’ll get into the habit of saving.

Pension planning

Balancing multiple financial goals is challenging, but it's definitely possible. The key is to budget wisely and prioritise your savings. With proper planning, you can allocate funds to both your home savings and your pension, so you don't have to choose one over the other.

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, while balancing all of life’s other demands. 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.