Here’s How to Prepare for Retirement in Ireland

40 and No Pension? Here’s How to Prepare for Retirement in Ireland
If you’re 40 years old in Ireland and have no pension, you might feel anxious about your financial future. Relying solely on the state pension, currently €265.30 per week (as of Janurary 2025), may not be enough to sustain the lifestyle you desire during retirement. The good news is there’s still time to take control of your financial future. At Dolmen our pensions team has put together a guide to help you get started and why working with a pension broker like Dolmen Insurance can make all the difference.
The Challenges of Relying on the State Pension
The state pension provides a basic safety net, but it’s not designed to fund a comfortable retirement. If you have a pleasent lifestyle, such weekend breaks away, holidays with the family, dinner dates once a month, you may well want this to continue into your golden years. Rising living costs, inflation, and longer life expectancies mean that relying solely on the state pension could result in financial strain, stress and disappointment. Planning now ensures you can maintain your desired standard of living when you retire.
Steps to Start Building Your Pension
The first step in planning your pension is to assess your current financial situation. Take a close look at your income, expenses, and savings to determine how much you can realistically set aside for your retirement. Even if your contributions start small, consistency will make a significant difference over time.
Next, it’s important to understand the pension options available in Ireland. Personal Retirement Savings Accounts (PRSAs) are a flexible and tax-efficient choice that suits many people, especially those without an employer-sponsored pension scheme. If you’re employed and your company offers an occupational pension scheme, joining it could be a smart move. Employer contributions can significantly boost your savings over time. For self-employed individuals, personal pensions or PRSAs are ideal tools to secure a solid financial future.
One of the greatest benefits of saving for a pension in Ireland is the generous tax relief offered by the government. At age 40, you can claim tax relief on contributions up to 25% of your annual earnings, up to a maximum of €115,000 (*Please note these figures a correct at the time of writing this piece, however are subject to change). This means your pension savings cost less than you might think, and your contributions grow more effectively.
Why It’s Not Too Late
Starting a pension at 40 is far from too late. With approximately 25 years until the typical retirement age, there’s ample time to build a substantial fund. By contributing regularly, even modest amounts can grow significantly due to the power of compound interest. For instance, a contribution of €300 per month with an average annual return of 5% could grow to over €180,000 by the time you turn 65.
The key is to start now. The earlier you begin saving, the more time your money has to grow. Regular reviews of your plan will also ensure it remains aligned with your retirement goals.
The Benefits of Working with Dolmen Insurance
Planning your pension can feel overwhelming, especially if you’re starting later in life. This is where a professional pension broker, like Dolmen Insurance, can make all the difference. With years of expertise, Dolmen Insurance offers personalised advice tailored to your financial situation and future aspirations.
Our team lead by Aine Derham ensures that your pension plan is optimised for tax efficiency, helping you make the most of the reliefs available. We also simplify the process by identifying the best pension products on the market, saving you time and effort. As your circumstances change, we’ll work with you to adjust your plan, ensuring it continues to meet your needs.
Looking Ahead to a Secure Retirement
Retirement planning is about more than just saving money, it’s about creating a vision for the future you want. Setting clear goals for your retirement lifestyle is a crucial part of this process. Whether you’re planning to travel, pursue hobbies, or enjoy time with family, having a solid financial plan in place makes those dreams achievable.
It’s also essential to review your progress regularly. Life changes, and your pension should adapt accordingly. Diversifying your investments is another key strategy, as it reduces risk and helps your savings grow steadily over time.
Take Control of Your Financial Future
Reaching 40 without a pension isn’t a reason to panic—it’s an opportunity to start fresh. With the right guidance and a commitment to consistent saving, you can still build a comfortable retirement fund. Dolmen Insurance specialises in helping individuals like you navigate the complexities of pensions and create a plan that works. We advise and you decide!
Don’t wait any longer. Contact Dolmen Insurance today to discuss your pension options and take the first step toward a secure, enjoyable retirement.
If you'd like to discuss your options please contact our team today.
Call: 01 - 8022385
Visit: www.dolmen-insurance.ie/contact
Email: life@dolmen-insurance.ie
*While all information in this blog post is correct at the time of writing, changes can affect this. The information provided may not reflect individual circumstances and policies, and it is recommended that you speak with a qualified insurance broker for personalized advice.