60% of workers are ‘just glad to have a job’

Three in five workers are just glad to have a job but half of those working are making no provision for their retirement, a study has found.

60% of workers are ‘just glad to have a job’

In keeping with a number of recent studies highlighting the inadequate rate of pension provision, research compiled by investment and pension company Irish Life has found that 49% of working adults do not have a pension in place.

Almost three-quarters of people (73%) would choose to work for a firm that provided a company pension, indicating a desire to save.

Irish Life corporate business managing director David Harney said it was in the best interests of employers as well as employees to provide a pension plan for workers.

“The research findings revealed the benefits for employers offering a company pension plan. Nearly four in five full-time workers claim they would be happier to work for a company that provided a company pension.

“A company pension plan is also important in attracting the best talent with 73% of those surveyed claiming they would prefer to work for a company that provided a pension.”

The cost of having a pension is seen as the most prohibitive factor to saving, with half of people saying they could not afford to pay anything towards a plan.

The next most common reason (18%) respondents identified for not having a pension was that workers felt they were too young.

Pension savings are not as costly as many think though, according to Mr Harney.

He said that for those paying the top rate of tax, every €100 contributed to a scheme resulted in a €59 reduction in take-home pay thanks to generous tax relief measures — although this is set to change marginally following Tuesday’s budget announcements — while those paying at 20% have their net pay reduced by €80.

“Assuming a retirement age of 65, someone who commences contributions of €10,000 annually at age 25 will have an estimated fund of €598,000 at age 65 compared to €318,000 for someone who starts at age 40.”

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