Pensions: Why Waiting Costs More Than You Think
Most people know they “should” have a pension. But too often, pensions are pushed down the list, overshadowed by mortgages, school fees, or the day-to-day demands of running a business.
At Blue Chair Financial, we’ve seen time and time again how delaying pension planning can quietly become one of the most expensive financial decisions a person makes.
The Hidden Cost of Waiting
Let’s put this into perspective. Someone who starts saving €500 a month into a pension at age 35 could retire with a significantly larger fund than someone who starts at 45, even if they contribute the exact same amount each month. Why? Because time and compounding growth do the heavy lifting.
By waiting, you don’t just lose the years of contributions, you lose the years of growth those contributions would have generated. To “catch up,” you often need to contribute double, or more, later in life.
Why Pensions Matter for Business Owners
For SME owners and directors, pensions are not just a retirement tool, they’re a powerful financial planning strategy today. Contributions can often be made through the company, reducing corporation tax while building personal wealth.
It’s one of the few areas where the tax system actively rewards you for planning ahead. Yet, many directors leave this advantage untouched.
Beyond Just a Pot of Money
A pension isn’t just savings. It’s a structured plan for independence:
Tax relief today – reducing your immediate tax bill.
Growth over time – with investments working in the background for years.
Income in retirement – giving you flexibility when you want to step back from the business.
Common Misconceptions
“I’ll sell my business, that will fund my retirement.”
This is a common belief among business owners. But relying solely on a business sale is risky, markets change, timing doesn’t always align, and valuations aren’t guaranteed. A pension provides a secure foundation, so you’re not relying on one single event.
“I’ll start later when I have more cashflow.”
We hear this all the time, but the truth is, starting small is better than not starting at all. Even modest contributions can grow significantly when given time.
Take the First Step
If you’ve been putting off starting or reviewing your pension, the best time to act is now. Every year counts, and every year you delay makes the hill steeper to climb.
At Blue Chair Financial, we specialise in helping business owners and professionals put the right pension strategy in place, balancing today’s realities with tomorrow’s goals.
We offer a free 30-minute consultation to help you understand where you stand and what options are available. No pressure, no jargon, just clarity.
Message us here or visit www.bluechairfinancial.ie to book your review.
