Half of Irish adults not prepared for recession

AS MUCH as half of Ireland’s adult population are not adequately financially prepared for a recession.

Hibernian Life & Pensions yesterday said many people do not have the savings to cope with a recession and 60% are worried about having sufficient funds for their retirement. However, the concerns are changing savings habits for the better.

“Following a decade of boom-time spending, consumers in Ireland are no longer splashing the cash and only a little over one third of adults would now rather spend for today than save for tomorrow. Instead, we’re rapidly becoming a nation of savvy savers focused on having a nest egg for retirement,” said Hibernian’s Mark Reilly.

“Ireland is forecasted to have over 1.1 million old people by 2036. This means that anyone who is in their mid-30s today, having lived through the boom of the past decade, will be living on the State pension, plus any private pension income, by 2036.

“The weekly state pension currently stands at just €223.30 per week, providing a bare bones safety net for Ireland’s grey army. With people now switched on to the need to plan for retirement, the research clearly shows that consumers are making up lost ground despite the financial market turmoil.”

The report said only 6% of people and just 3% of those aged between 35 and 54 strongly believe the Government will provide an adequate level of income in retirement.

The figures show that 45% of adults are regularly setting money aside for use when they retire.