We’re always being told we should save more into our pensions, but how much is enough?  Here are three questions to ask yourself and help decide.

1. How much money will you need in retirement?

Life is supposed to get cheaper in retirement.  The mortgage is paid, and the kids have flown the next.

So how much is needed?

Of course everyone’s situation is different, but as a rule of thumb you’ll need around 66% of your pre-retirement income in retirement.

For now, make a reasonable guess of the salary you expect to retire on, and knock a third off it.  Write it down – a rough estimate is fine.

2. What does your current pension setup look like?

Time to dust down that six-monthly letter that tells you how much you’ve paid in, how much your pension is valued at today, and what kind of annual income that could provide you in retirement.

Remember that most people in Ireland who have worked during their career can receive the contributory state pension (currently €243 per week) in addition to their private pension.

For people born after 1960, the state pension will kick in from age 68.

Now the moment of truth: what is the difference between the figure from question one, and your current provision?

3. What should you do to bridge the gap?

If you’re finding there is a gap between your projected pension benefits and how you’d like to live in retirement, it’s time to take action.

For example, you could consider:

Take affordable action today

If the gap seems large, don’t panic.

Taking affordable action now, no matter how small, is a great step towards addressing the problem.   That’s because the longer your pension money stays invested, the greater the chance it has to compound and grow for you.

Don’t be disheartened – but do take practical steps today.


Boost your pension with Moneycube today.

By investing €400 a month you could save €27,900 in 5 years

Using our "Picture your money" tool, you can find out how your money could work for you.

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Note: This is an initial indication to help you picture your money. Remember that with investments it is not possible to know for certain what returns you will achieve. Please note the investment warnings at the bottom of the page. This is the approximate before-tax return on an investment which grew at 6% over 5 years.

How to start a pension in Ireland


Should you be doing more for your retirement? Our free ebook guides you through your pension options and answers the three big questions to get you on your way to a well-planned retirement. 

How to start a pension in Ireland