Why does waiting cost more than the contributions I miss?

Money invested early has longer to grow, and growth earns growth. At 7% a year, €500 a month for 30 years becomes €584,726.30. Starting five years later it becomes €391,520.94, though you pay in only €30,000 less.

Does tax change the answer?

It shrinks both. Pensions grow without tax, funds pay exit tax (38% in 2026, 35% from 2027) including every 8 years, and savings interest pays 33% tax. Starting early still wins under each.

Investing

The cost of waiting to start

See what waiting a few years to start a pension, fund or savings plan costs by the time you need the money, after Irish tax.

Self-assessment tool. The figures come from your own answers. It isn't advice, and you're responsible for what you file or claim. heypenny.ie is a trading name of Kinch Press. Read the disclaimer.

Common questions

Why does waiting cost more than the contributions I miss?: Money invested early has longer to grow, and growth earns growth. At 7% a year, €500 a month for 30 years becomes €584,726.30. Starting five years later it becomes €391,520.94, though you pay in only €30,000 less.
Does tax change the answer?: It shrinks both. Pensions grow without tax, funds pay exit tax (38% in 2026, 35% from 2027) including every 8 years, and savings interest pays 33% tax. Starting early still wins under each.

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