Retirement planning in your 40s

By your 40s, you may have built up a reasonable pension pot, particularly if you’ve saved since your 20s, and now may be the time to get your pensions into top shape:

1. Review your pension contributions: as you’re likely to be more financially secure in your 40s, now may be a good time to review your pension contributions to see if you can invest more. 
2. Benefit from ‘free money’: The more money you add to your pension, the more tax you will save. For example, for every €1,000 invested in your pension, the net cost to you after tax is €600 if you’re a higher-rate income taxpayer or €800 of you’re a lower rate taxpayer. Learn more about pensions tax relief here.  Also check with your employer to ensure you’re getting the most out of your employer pension contributions. 
3. Consolidate your pensions: If you have had a few different employers, you may have pensions in several places. This can make it hard to understand your pension benefits and how much they cost. You may make your life easier by combining your pensions under one provider.
4. Consider AVCs: If you have extra money you want to put in your pension, you can pay additional voluntary contributions.

Help, I’m in my 40s and I haven’t started paying into a pension yet!

If you find yourself in your 40s without a pension plan, don't worry! There's still time to get your retirement savings on track. Start by looking at your current financial situation and thinking about what you want your retirement to look like. Enrolling in a pension plan is a great way to maximise tax benefits and investment options.  If you're a business owner, consider tax-efficient pension options like PRSAs. Remember, there is always time to start saving for retirement even in your 40s, and there are always ways to make up for lost time when building up your retirement savings by contributing as much as you can afford, either on a regular basis, or through a series of one off single premium contributions.

Your Financial Broker – the best place to get your pension 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’t¹. 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. 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.

Revenue rules and terms and conditions apply to pensions tax relief. Remember that tax laws can change over time, so it is important to check revenue.ie for the latest information