Start Your Pension Today



Entering your 40’s is when most people decide to properly plan for retirement.
Putting some money aside in your 40’s will help you avoid trying to live on the State pension which is currently a maximum of €248 per week.
Starting a pension is the perfect way to plan for further down the road.
You can claim tax relief on your contributions as well as enjoying tax-free growth.
As more and more people avail of the benefits pensions have to offer, one advantage is that it is never too late to start.
The process of starting a pension has also never been easier. With over 60% of all people in Ireland now having a pension arrangement in place, pensions are becoming a highly sought-after way of planning for retirement.
Starting a pension at 40 will still give you a minimum of 36 years to save for retirement. Although the State pension age is set to rise to 67 and likely beyond giving your pot more time to accumulate. We offer a simple 6 step process for anyone looking to start a pension.
Join the thousands of people across Ireland who are using a pension to plan for their future.

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 40?

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 40
Tax Relief on Contributions
Starting a pension at 40 means you will be able to avail of contributing up to 25% of your gross earnings while receiving income tax relief. This is up to an annual limit of €115,000.
Tax Free Growth
Should you start your pension at 40, you will receive a minimum of 26 years of tax-free growth on your pension fund.
Tax-Free Lump Sum
At retirement, you will often be eligible to take a percentage of your fund tax-free. The amount you take will be dependent on the type of arrangement you have and if you have taken lump sums from other pensions.
Most people will be eligible to take 25% tax-free as a lump sum. However, there is a limit of €200,000 that can be taken tax-free
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
It is never too late to start a pension. You will have many years in retirement and taking advantage of pension benefits will help you enjoy retirement.
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 €100 per month you will receive tax relief of 40% by Revenue.

Calculation Example: 1
Maura | Salary – €35,000
Age | 40 |
Salary (gross) | €35,000 |
Retirement age | 66 |
Target pension as a percentage of current salary | 50% (€17,500) |
State Pension | €12,912 p.a. |
Shortfall | €4,588 |
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 |
€4,588 p/a | 16 | €73,408 |
As we see from the above, there will be a shortfall of €73,408. This is including the assumption that Maura receives the full State pension.
Calculation Example: 2
Liam | Salary – €50,000
Age | 40 |
Salary (gross) | €50,000 |
Retirement age | 66 |
Target pension as a percentage of current salary | 50% (€25,000) |
State Pension | €12,912 p.a. |
Shortfall | €12,088 |
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 |
€12,088 p/a | 16 | €193,408 |
As we see from the above, there will be a shortfall of €193,408. This is including the assumption that Maura receives the full State pension.
How do I pay my pension contributions?
Your pension contributions are calculated on your earnings. You will receive income tax relief against your earnings from employment for your pension contributions.
Depending on your age, you will fall into a specific bracket that has a threshold limit that is directly correlated to age. The maximum earnings that can be considered for tax relief are €115,000 per year.
Below is a breakdown of the thresholds and how they change depending on age.
Age | Percentage limit |
Under 30 | 15% |
30-39 | 20% |
40-49 | 25% |
50-54 | 30% |
55-59 | 35% |
60 or over | 40% |
Planning to rely on the State Pension?
The current state pension in Ireland is €248 per week which is just over €35 per day. That is without accounting for the fact it is a system with €359 billion of liabilities.
Therefore, it may not be a viable long-term option. Should you choose to rely solely on the State Pension, you will likely huge hit in income levels.
Average Wage | €44,148 (CSO – 2021) |
State Pension | €12,900 |
Deficit | €31,248 |
Start Your Pension at 40

