You meant to start saving for retirement once you could put aside a proper 10%. A year later you still haven't, and your employer would have added to every euro you paid in.
In short: start with a small percentage you can keep paying, take the full employer contribution if there is one, and make it automatic so it comes off before you see the money. Then raise it a little at every pay rise. Time and the habit do more than a perfect starting amount.
- Small percentage now
- Take the full employer contribution
- Make it automatic
- Raise it at every pay rise
This is education, not tax or investment advice. Pension rules and tax benefits differ by country and change over time.
A worked example
Made-up but realistic: a €2,800 gross salary and an employer that adds the same amount you pay in, up to 3%.
| You pay | Employer adds | Total | |
|---|---|---|---|
| Not enrolled yet | €0 | €0 | €0 |
| 1.5% of salary | €42 | €42 | €84 |
| 3% of salary | €84 | €84 | €168 |
€1,008
Waiting for the "right" amount didn't save anything. It just gave up €84 a month that the employer would have added. Over 30 years at a made-up 5% average, €168 a month grows to about €140,402, and only €30,240 of that came out of the salary.
The steps
1. Find out what's on offer
Ask HR or check your contract: is there a workplace pension or a voluntary pension fund, and does the employer add anything? If so, up to what percentage?
2. Start with a percentage you can keep
1.5% or 3% is fine. A percentage rises with your pay on its own, a fixed amount doesn't. If there's an employer contribution, aim for the level that collects all of it.
3. Make it automatic
Best is a payroll deduction, so the money never reaches your account. If that's not available, set a bank transfer for payday, right after the bills (paycheck vs spendable).
4. Check the first payslip
Make sure the deduction and the employer's part actually appear. Mistakes happen, and they're easiest to fix in the first month.
5. Raise it at every pay rise
Add 0.5 or 1 percentage point when your pay goes up. You won't miss money you never got used to.
The traps
- Skipping the safety net. Without a one-month cushion, the first surprise bill can push you to stop the contribution or take money out (what to save for first).
- Taking money out early. Many pension products charge for, or restrict, early withdrawals. Treat it as untouchable.
- Assuming the tax rules. Some retirement savings come with a tax benefit, and the details change. Check the current rules with the fund or your tax authority before counting on it.
- Never looking at the costs. Fees add up over decades. Check the yearly cost once, when you join.
Try your own numbers
In the free investment calculator, enter €0 as starting money, €168 a month, 30 years and a 5% return: the middle line shows about €140,402. Try €84 a month to see what the employer's half is worth.
One thing to do today
Ask HR or check your payslip: is there an employer contribution, and are you collecting all of it?
Where Volora fits
In Volora, the pension can be its own wallet with a goal linked to it, so the progress sits next to your other savings. Payroll deductions never pass through your current account, so update the wallet from the fund statement, for example once a quarter. If you pay in yourself, a recurring transfer reminds you on payday and waits for your confirmation.