Retirement planning in your 30s

In your 30s, you may see your money stretched as your financial responsibilities grow. This could present tough financial choices. But if you want to make cutbacks, your pension may not  be the best place to look. 

By stopping or reducing your pension payments, you may miss three things: 

1. the tax benefits they bring 
2. the contributions from your employer, and 
3. the potential investment growth over time. 

The below table shows a projection of what a €100, €300, and €500 monthly could amount to in retirement if invested in our default pension investment strategy, Aviva’s My Future Lifestyling ARF at age 35 (assuming a 5.10% annual growth rate reducing to 2.43% in the 15 years before retirement)^{1, 2}:

Saving for retirement in your 30s – projected investment growth in default strategy^1,2 

If necessary, a short-term reduction in the amount you save in your pension contributions will have less effect on your pension than stopping completely. But if you need to pause your pension saving, modern pensions typically allow you to restart your contributions when you want, without additional charge. Just make sure to make a note in your diary so you don’t forget.

Your Financial Broker – the best place to get your pension started and stay in shape

In a recent Brokers Ireland Survey, those who sought pensions advice tended to have much bigger pension pots compared to those that didn’t³. So, if you're thinking about your pension, it's definitely worth considering speaking to a Financial Broker to make sure you're on the right track.  They’ll help you create a personalised pension plan to help you build a secure retirement and safeguard your hard-earned money.

1. This is based on an investment in Aviva’s Personal Pension Plan Option A. It assumes there is a 0.9% standard Annual Management Charge, 4% renewal commission, and €4.50 monthly policy fee. 
2. THESE ILLUSTRATIONS ASSUME INFLATION OF 3.00% PER ANNUM AND AN INVESTMENT RETURN. BEFORE RETIREMENT OF 5.10% PER ANNUM REDUCING IN THE 15 YEARS TO RETIREMENT IN LINE WITH LIFESTYLING OPTION 1 TO 2.43% PER ANNUM. THESE ARE LONG TERM ASSUMPTIONS. THEY ARE FOR ILLUSTRATION PURPOSES ONLY AND ARE NOT GUARANTEED. ACTUAL INVESTMENT GROWTH WILL DEPEND ON THE PERFORMANCE OF THE UNDERLYING INVESTMENTS AND MAY BE MORE OR LESS THAN ILLUSTRATED.
3. Source: Brokers Ireland Survey July 2023 ‘The value of advice’. The average pension pot of those who sought pensions advice from a financial broker was €130,525 compared to €84,230 for those who didn’t seek advice. 

This article is not intended to give advice or a personal recommendation. If you'd like a personalised recommendation based on your circumstances, you should speak with a financial broker.  You can find a financial broker on brokersireland.ie.

Remember that tax laws can change over time, so it is important to check revenue.ie for the latest information.