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Earlier this week we posted an article on our social media pages about the risk of leaving it too late to start saving for a pension. Here are some of the main points from the article

The average person starts paying into a pension at the age of 37, according to a recent study by Irish Life.

The average person pays approximately 11.1% of the salary into their pension. Let’s take a look at what kind of pension this would get you if you started saving at a few different ages assuming a final salary of €60,000 per annum.

If you waited until you were 60 years old you would retire on a private pension equivalent to only 2.4% of your final salary. Your pension in this case would put only €1,440 a year into your pocket, which works out at about €28 a week.

If you waited until you were 50 years old you would retire on a private pension equivalent to only 7.7% of your final salary. This would pay you €4,620 per annum or €89 a week.

If you waited until you were 40 years old you would retire on a private pension equivalent to only 13.7% of your final salary. This would pay you €8,220 per annum or €158 a week.

If you waited until you were 30 years old you would retire on a private pension equivalent to only 20.5% of your final salary. This would pay you €12,300 per annum or €236 a week.

There are two main points to be taken from these figures, firstly the earlier you start saving the better and secondly the idea that saving 10% of your salary is enough is outdated. It is clear that people need to start saving more, earlier if they wish to be self-sufficient in retirement.

As always the performance of your investments and the charges on your investments will have a huge impact on your final fund also. So it is hugely important that you deal with an independent expert financial advisor when planning your retirement.