When is the best time to start saving for a pension? It's best to start saving now for later in life. Because the earlier you start, the more your efforts will pay off. You must be at least 18 and less than 65 years old.
The earlier you start, the more your efforts will pay off.
Why start young?
Pension saving is generally the last thing on the minds of young people starting out in their first job. Yet it's best to start saving now for later in life. Because the earlier you start, the more your efforts will pay off. Find out why you should start saving for your pension today.
You benefit from tax relief
As soon as you start to work, you officially have to start paying taxes, too. If you save for your pension, you pay less in tax, because each year you get tax relief of 30%1 on the amount you put aside. For instance, if you save 900 euros during the year, you get back 270 euros. That's a nice little extra, don't you think? The maximum amount allowed for pension savings this year is 940 euros.
You save over the long term
The tax benefit is a nice little extra, but the main advantage of starting to save for a pension early in life is that you save over a very long term.
- Say you put aside a fixed amount every month from the age of 25
- You'll have roughly four times more at the age of 65 than you would have if you only started at 45
You can save from as little as 10 euros
The minimum amount you have to put aside each month is 10 euros. So saving for your pension won't take much out of your budget. You decide yourself how much you want to put into the plan each month.
It's never too late!
Even if you start later in life, such as at the age of 50, it's still worthwhile putting aside savings for your pension. In that case, though, you won't have access to your money for 10 years so you'll need to bear that in mind.
1 The tax treatment depends on the each saver's personal situation and may change in the future.
2 The simulation uses an annualised return of 6%. This rate is for illustrative purposes only and provides no guarantee whatsoever of future returns. The tax treatment depends on the each saver's personal situation and may change in the future.