One of the most common mistakes people make when planning for their retirement is underestimating the amount of time they will spend in retirement, according to Bell.
The average Irish person can now expect to live until the age of 81 — and so, assuming you retire at the age of 65, you can expect your retirement to last for at least 16 years. Of course, you could live much longer than this. Should you live into your 90s, for example, you will be at least 25 years in retirement. So should you be in your 30s or 40s and planning your pension, be aware that the money in your pension pot could have to last for 20 or more years. Ensure therefore to save enough into your pension from a young age. “You should be putting 20pc of your net income into your pension,” said Bell. Starting to top up your pension when you’re in your 30s or early 40s is a good idea.