When's the best time to start saving for retirement?

Wondering when’s the best time to start pension saving? The short answer is actually quite simple. If you’re working and paying taxes, it’s worthwhile to start putting money into a pension savings scheme because of the tax relief you receive. We will take a closer look at two specific situations below, namely pension saving at the start of your career and pension saving at the end of your career.

Pension saving at the start of your career

Finishing your studies and starting out in your first job opens up a raft of possibilities for you. You probably have lots of plans in mind like renting a flat or house, going on holiday or maybe even buying yourself a car. And because you’re earning a salary, you’ve got the means to realise those dreams.

Saving for your retirement is probably not at the top of your wish list. However, it’s worth bearing in mind that the younger you start, the more you stand to gain. That’s because, for every year you save towards your pension, the government will give you tax relief* of up to 30% on what you put in. For instance, saving 500 euros in a year will get you a tax break of 150 euros!

What’s more, taking a long-term approach is definitely to your benefit. If you start depositing a fixed amount every month from the age of 25 on, you’ll have built up about four times more capital by the time you turn 65 than you would have had you started when you were 45.

Tip: If your starting salary is low, put a smaller amount into your pension savings scheme. You can start saving with us from as little as 10 euros a month!

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Pension saving after you turn 50

Fifty-somethings tend to have a bit more financial leeway. Generally speaking, the house is just about paid off, the children may have already left the nest and you’re earning more as your career progresses. At the same time, however, you’re also nearing retirement and you know that your state retirement pension will be a lot less than your current income.

If you’d like to live as comfortably during retirement as you do now or even want to splash out a bit more, pension saving is a tax-efficient way to supplement your retirement income. Each year, it can save you up to 30% in tax*.

Even after you turn 50, it still holds true that the sooner you start saving, the more you’ll end up with further down the line. And the sooner you’ll receive your pension savings pot too, because pension saving is always done for at least 10 years.

Tip: To get maximum tax relief, it’s crucial to start pension saving before you turn 55. Find out why your 54th birthday is so important.

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* The tax treatment depends on the personal situation of the pension saver and may change in the future.