I am often asked to provide the ‘numbers’ why starting a pension earlier makes more sense than waiting.

Often,  there is no real reason why new customers haven’t started a pension plan. Yet, when a new potential pension starter is shown these figures the need to at least start a pension becomes clearer.

These numbers may prompt you to think again and maybe make contact with us. If so, we would be delighted to hear from you.

So let’s start with an example

If Rachel was prepared to invest EUR 5,000 annually, with projected 5% growth per annum.

What might her fund be worth at age 65 based upon different start dates, all other things equal. And, of course assuming affordability from age 24 onwards.

IMPORTANT TAX RELIEF – If Rachel was a 40% tax payer an annual investment of EUR 5,000 would cost net EUR 3,000 after tax relief (and EUR 4,000 if a 20% tax payer).

starting at age 24

EUR 639,199

starting at age 35

EUR 353,804

starting at age 45

EUR 178,96

starting at age 55

EUR 71,034

So there you have it. Definitely is a good thing to start earlier, if you can.

One of our other blog posts discusses investment choice – another critical variable.

We are here to help you make a better decision.

If you have a financial planning or product question please contact us. Know more. 091 44 11 88 or office@nelsonlife.ie

This article was written by Rory Nelson, founder of Nelson Life. Rory is celebrating 20 years in financial planning this year. Professional qualifications include; UCD Specialist Diploma in Wealth Management, Pension Trustee Practitioner PTP, UCD Professional Certificate in Stockbroking,UCD Professional Certificate in Asset Management (SIA),  QFA FLIA, Pensions Diploma, Mortgage Advice Diploma, CFP module – Tax & Estate Planning and has a degree in BA Accounting & Finance. He has regularly participated in national financial press.


Nelson Life is regulated by the Central Bank of Ireland.

We are Trusted Financial Advisors and now have access to 20 products providers (we are NOT tied to one provider).

WARNING: Past performance is not a reliable guide to future performance.WARNING: The value of your investment may go down as well as up.WARNING: You may lose some or all of the money you invest.WARNING: These funds may be affected by changes in currency exchange rates.WARNING: If you invest into this product you will not have access until you retire.WARNING: The above content does not constitute investment advice, as it does not take into account the investment objectives, knowledge and experience of financial situation of any particular person. Prospective investors are advised to make their own assessment of the information contained herein and to obtain professional advice suitable to their own individual circumstances.WARNING: The information contained in this document is based on our understanding of current tax legislation and the current Revenue Commissioners interpretation thereof and is subject to change including retrospectively without notice. This is intended as a general guide only and is not a substitute for professional tax, legal and investment advice. 

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