It’s never too early to start planning for your retirement. But the good news is we are living longer than ever before. Latest statistics suggest that men and women in Ireland can expect to live to 81.5 years, on average.

Pensions are a complex area and this guide should help dispel some of the myths around your pension and investments. But whether you are just starting out on your career path or getting close to retirement, you should be planning now.

The earlier you start saving for retirement, the better. This will give you more time to make contributions and for your fund to grow in value. Of course you have to balance this with other financial needs, such as buying a home or providing for your children’s future. Remember, you can get income tax relief on your contributions, so the net cost to you will be lower.

If you don’t start a pension fund until your 40s, you will have less time to build it up. So you will have to put more money in to give you the same pension you would have had if you started saving in your 20s or 30s.

If you are older when starting a pension, don’t let this put you off, as it is better to have a smaller fund than no fund at all.

In this focus we also look at investments. It is important that when you compare investment products you should consider the risks involved, as most investments do not give you a capital guarantee and also the likely return. Remember that risk and return go hand in hand, so as a general rule: the lower the risk, the lower the rate of return. With longer-term and higher-risk products, you can expect higher returns, but this is not guaranteed and you could lose some or all of your money. You need to carefully consider the effect of this on your financial situation.

Investing is complex, so consider getting professional financial advice. Make sure any adviser you use is authorised and remember to ask the right questions.