Why your future deserves more than a deposit account earning 1%
7 lessons in long‑term investing for Irish savers
Peter Smith, Investment Director, Aviva Investors
Keeping your savings in deposit accounts is sensible for everyday needs. But did you know that in Ireland, 90% of savings are on deposit earning less than 1% interest1 ? For long-term goals like retirement or a child’s education, relying only on low-interest deposits could mean your money won’t grow enough for the future you want.
At Aviva, we believe investing should feel straightforward.
Here are seven simple long-term investing lessons, explained clearly.
These aren’t predictions, just practical principles to help you make informed choices—with a Financial Broker’s support.
Lesson 1, think long-term
Why looking ahead can smooth the bumps
Markets rise and fall in the short term, sometimes sharply. But when you look at longer periods, the ups and downs tend to even out, and growth has more time to build on itself.
Chart: Long‑term equity market returns
Source: Aviva Investors/Lipper as at 31 December 2025, MSCI World Index (NR, Local). The MSCI World is a simple, global benchmark that tracks around 1,300–1,600 leading companies across 23 developed countries, giving long‑term investors a broad and diversified view of how major markets are performing.
| Warning: Past performance is not a reliable guide to future performance. |
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What the chart shows:
Global stock markets have grown over long periods like 20, 30, and 50 years, even though there were plenty of dips along the way.
Lesson takeaway: If your goal is years away, such as retirement or education planning, a long‑term approach may suit your needs better than relying on low‑interest deposits.
Lesson 2, market dips happen
Why staying calm during declines can help your long‑term strategy
Every year, markets experience drops. This is normal.
But even with those dips, many years still finish in positive territory.
Chart: Markets go up more than they go down
At some point in every calendar year the market falls, but markets go up more than they go down
Source: Aviva Investors & Bloomberg, as at 31 December 2025. Data used MSCI World (TR local).
| Warning: Past performance is not a reliable guide to future performance. |
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What the chart shows: Each bar shows how markets finished the year. Each marker shows the biggest fall that happened during the year. Even in years with large mid‑year drops, markets often recovered before year‑end.
Lesson takeaway: Short‑term volatility is uncomfortable, but temporary dips don’t automatically mean long‑term losses. Staying invested can help you avoid missing the recovery.
Lesson 3, timing the market costs
Why trying to ‘wait for the perfect time’ can backfire
It’s very difficult to predict the best moment to invest.
Chart: The danger of being out of the market (1988–2025)
S&P 500 - Growth of €10,000 since 1988 to 2025 & effect of missing the best days
Source: Aviva Investor & Bloomberg, as at 31 December 2025. Data used S&P 500 TR USD.
| Warning: Past performance is not a reliable guide to future performance. |
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What the chart shows: If you had invested €10,000 and stayed invested, your money would have grown much more than if you had missed even a handful of the strongest market days. Those “big days” often come right after big declines, which is when nervous investors are more likely to step out of the market.
Lesson takeaway: Staying invested, rather than jumping in and out, can help you benefit when markets recover.
Lesson 4, markets recover early
Recoveries don’t wait for good economic news.
Historically, markets have often started to rise before confidence fully returns.
Chart: Markets recover from crises
Crisis and recovery: how the S&P 500 index has performed during and after historic events
Source: Aviva Investors, Lipper, a Thomson Reuters company, as at 31 December 2024. Data used S&P 500 TR USD. The S&P 500 is a group of the 500 biggest and most important companies in the U.S. stock market.
| Warning: Past performance is not a reliable guide to future performance. |
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What the chart shows: Looking at several past crises, markets often delivered strong returns in the 12 months following the lowest point, even when the news still felt negative.
This doesn’t guarantee future recoveries, but it’s a useful pattern to know.
Lesson takeaway: If you wait for “things to feel better,” you may miss the early part of a recovery.
Lesson 5, the odds favour investors
Why long‑term investing can feel steadier
Short‑term market results can be unpredictable.
But the longer you stay invested, the less these short swings tend to impact your overall outcome.
Chart: Rolling long‑term returns
Source: Aviva Investors, Lipper, a Thomson Reuters company, as at 31 December 2025. Data used S&P 500 CR USD. A rolling return shows how an investment performed over the same length of time, starting at different dates, so you see the bigger picture, not just one result.
| Warning: Past performance is not a reliable guide to future performance. |
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What the chart shows: Rolling returns over longer time periods (like 10 years) have historically been less volatile than those over shorter time periods (like 1 year).
Lesson takeaway: Long-term investing rewards patience.
Lesson 6, start early, grow more
Why time is one of your greatest financial tools
The earlier you begin, the more time your money has to benefit from growth on top of growth.
Chart: Effects of compounding over time
| Warning: Past performance is not a reliable guide to future performance. |
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Source: Aviva Investors & Bloomberg , as at 31 December 2025, MSCI World Index (TR, Local)
What the chart shows: Two people invested the same amount (€36,000 over 20 years). The only difference was when they started.
- Investor A started earlier, giving their money more time to grow through different market conditions.
- Investor B invested the same total amount but started later. Their outcome was still positive, just smaller because the money had less time to grow.
Lesson takeaway: The earlier you start, the more time your money has to work — even if you’re only investing a little each month.
Lesson 7, risk drives returns
Why the right level of investment risk can support long‑term goals
Taking no investment risk can sometimes mean your money struggles to keep pace with rising prices.
Taking too much risk might feel uncomfortable.
The key is finding a level that suits your goals and how you feel about ups and downs.
Chart: understanding risk
| Warning: Past performance is not a reliable guide to future performance. |
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Source; Aviva Investors, as at 31 December 2025.
• Low Risk is 20% Global Equities/80% Global Bonds (hedged) in euro.
• Medium Risk is 50% Global Equities/50% Global Bonds (hedged) in euro.
• Higher Risk is 80% Global Equities/20% Global Bonds (hedged) in euro.
All rebalanced daily, based on index returns, gross of fees and costs. When a fund is hedged in euro, it means the fund manager takes steps to reduce the impact of currency movements on your investment returns.
What the chart shows: Three different risk levels - low, medium and higher - behaved differently over 20+ years.
- Higher risk: larger ups and downs, but stronger long‑term growth.
- Medium risk: a balance between smoother performance and growth.
- Low risk: smaller dips, steadier journey, but lower long‑term growth.
All three grew over time, just at different speeds and with different bumps along the way.
Lesson takeaway: There’s no “right” level of risk, just the one that suits you.
A Financial Broker can help you find the mix that matches your comfort and long‑term plan.
Is long‑term investing right for you?
If your savings are for long‑term goals and are currently in cash, now may be a good time to consider whether they’re working hard enough for your future.
A Financial Broker can help you understand your options and choose an investment approach that suits your needs and comfort.
Final thought, your future deserves more than 1%
You’ve worked hard for your money.
Now it may be time to let your money work hard for you.
1. Source: Central Bank of Ireland 31 December 2025. Households: Overnight (0.13%) + Redeemable at notice (0.85%) = €154.2bn of €171.0bn → 90.2%. Qualifying terms and conditions apply to fixed deposits. The interest earned in a fixed term deposit account is guaranteed. When you invest in a deposit account you may qualify for compensation under the Deposit Guarantee Scheme if the bank is unable to meet their obligations to you.