Start Your Pension Today



As you enter your 30’s you likely either have a pension arrangement or are looking to start one.
The good news is that starting so early means you can benefit from the tax advantages along with compound interest for 30+ years.
A combination of the above will put you in a strong position and is far better off than contributing to a regular savings plan.
As you pay off the mortgage, you may have some disposable income that you’d like to squirrel away while receiving tax relief.
Starting a pension gives you the perfect opportunity to do so.
We know by now the earlier you start the better. Not only because of the benefits we mentioned but fluctuations in the market will also have less of an effect over a longer time period.
Starting a pension at 30 will allow you to contribute a maximum of 20% of your gross salary while receiving income tax relief.
You will not only receive tax relief but also tax-free growth as well as the opportunity of a 25% tax-free lump sum at retirement.
If the retirement age stays as is, starting a pension at 30 will give you 36 years to reap the tax benefits on offer.

How to Start a Pension?
Step 1: Understanding how pensions work
Step 2: Meeting with a financial advisor
Step 3: Assessing the different pension options available
Step 4: Fact-finding process
Step 5: Risk assessment
Step 6: Select an investment strategy that is suitable to your needs
It is also important that you take time to review your pension annually alongside your financial advisor.
What types of pensions can you start at 30?

Personal Retirement Savings Account (PRSA)
This is a personally owned pension that can be taken out regardless of employment status.

Self-Employed Pensions
Our clients include both self-employed and sole traders assessing their options.

Company Pension Schemes
We help small-medium size businesses set up or review their pension schemes.
Benefits of Starting a Pension at 30
More time to take advantage of incentives
Starting a pension at 30 will allow you 30+ years to take advantage of compound interest, tax relief on your contributions, and tax-free growth.
Market volatility is less important
As you will be saving for 30+ years, any volatility within the market will be less impactful. Your fund will have time to recover should it drop at various stages of your journey.
Long-term planning
Starting a pension early will give you the opportunity to appropriately plan for retirement. Regularly reviewing your pension will enable you to put a long-term plan in place and enjoy the retirement lifestyle you deserve.
Starting a pension at 30,40 & 50
Starting a pension at 30
Starting a pension at 30 will give you approximately 37 years to save for retirement. Plenty of time to enjoy tax-free growth and tax relief on your contributions.
Learn MoreStarting a pension at 40
Starting a pension at 40 means you are slightly closer to retirement. Although you can contribute up to 25% of your salary subject to conditions.
Learn MoreStarting a pension at 50
Being in your 50's does not mean it is too late to start a pension. Our advisors can walk you through the process and answer any questions you may have.
Learn MorePension Tax Relief Benefits
If you are on the tax rate of 20% and invest €100 per month you will receive tax relief of 20% by Revenue.

If you are on the higher tax rate 40% and invest €400 per month you will receive tax relief of 40% by Revenue.

Calculation Example: 1
Michael | Salary – €30,000
Age | 30 |
Salary (gross) | €30,000 |
Retirement age | 66 |
Target pension as a percentage of current salary | 50% (€15,000) |
State Pension | €12,912 p.a. |
Shortfall | €2,088 |
Please note – the above calculations are based using assumptions and figures from the Central Statistics Office around life expectancy in Ireland and should not be taken as advice.
If you are looking to calculate how much you may need in retirement, we offer a complimentary consultation with an advisor. This can be done online, over the phone, or in person.
Amount needed per year | Amount of years | Total |
€2,088 p/a | 16 | €33,408 |
As we see from the above, there will be a shortfall of €33,408. This is including the assumption that Maura receives the full State pension.
For this example it is worth noting that as you progress throughout your career your salary will likely rise. Therefore, it is unlikely that Michael’s final salary will be €30,000.
It is also worth noting that living on €15,000 may be unrealistic. We have ignored inflation in these examples to keep things simple but €15,000 today will likely be worth a lot less in 30+ years times.
Calculation Example: 2
Karl | Salary – €40,000
Age | 30 |
Salary (gross) | €40,000 |
Retirement age | 66 |
Target pension as a percentage of current salary | 50% (€27,500) |
State Pension | €12,912 p.a. |
Shortfall | €7,088 |
Please note – the above calculations are based using assumptions and figures from the Central Statistics Office around life expectancy in Ireland and should not be taken as advice.
If you are looking to calculate how much you may need in retirement, we offer a complimentary consultation with an advisor. This can be done online, over the phone, or in person.
Amount needed per year | Amount of years | Total |
€7,088 p/a | 16 | €113,408 |
As we see from the above, there will be a shortfall of €113,408. This is including the assumption that Maura receives the full State pension.
How do I pay my pension contributions?
As you contribute to your pension, you will be eligible for income tax relief against your earnings.
However, the amount you can contribute while receiving relief directly relates to your age.
There are specific thresholds that change depending on your age. From age 30-39, you can contribute 20% of your earnings and be eligible for relief.
However, the maximum earnings that can be considered in a year are €115,000.
Age | Percentage limit |
Under 30 | 15% |
30-39 | 20% |
40-49 | 25% |
50-54 | 30% |
55-59 | 35% |
60 or over | 40% |
Conclusion
To conclude, it is never too late (or too early) to start a pension.
If you are 30 or approaching 30 and looking to start a pension you have made a smart decision.
Take advantage of the tax incentives and use compound interest to your benefit over the next three-plus decades.
It is worth noting, the case studies or figures above should not be regarded as financial advice.
They can be used as a guide but you still must seek advice from a qualified professional.
info@pensionsupportline.ie | |
Phone | 01 890 3518 |
Start Your Pension at 30

