Half of employees expect to work longer to fund retirement

New report highlights lack of preparedness for retirement

Thu, 07 May, 2026 - 00:10

Martin Claffey

Almost half (49%) of Irish employees expect to work longer then hoped to fund retirement, with only 10% of 55 to 64 year olds saying they are financially prepared to finish working, new research published on Thursday shows.

The report on behalf of the Financial Planning Standards Board Ireland (FPSB) Ireland), the Insitute of Banking, professional life assurance body LIA, and the Retirement Planning Council of Ireland (RPCI), surveyed 1,200 employees and 500 employers across private, public, and not‑for‑profit organisations. The report found 74% of people say they manage their day-to-day finances well, nearly 8 in 10 (79%) say they do not feel prepared for retirement.

Some 45% of employee respondents said they do not understand retirement planning, while 35% do not understand their pension scheme.

“Ireland has made significant progress in encouraging pension participation. But this research shows clearly that participation is not the same as preparedness. The real gap now is understanding - and being able to picture not just the money, but the life you want after work," said Emily Kirk, CEO of Financial Planning Standards Board Ireland.

The issue also affects employers, with 77% of them reporting financial stress is impacting employee productivity. Only 31% of employers believed their workforce was financially ready to retire - and just 32% believe employees are prepared for the lifestyle transition retirement involves.

Laura Farrell, CEO of Retirement Planning Council of Ireland, said: “Retirement readiness is not a single moment late in a career. It is a process. Strengthening understanding earlier, particularly in mid‑career, helps people make informed, confident decisions and allows organisations to manage progression, succession and retirement more sustainably.”

The research also highlights a strong appetite for help, but a gap in provision of support. Nearly three‑quarters of employees (72%) believe employers should support the transition to retirement, and 60% would welcome working with a professional to help plan. While 63% of employers say they would welcome external specialist support, only 32% currently offer a structured retirement‑planning programme.

Importantly, the study emphasises that employers are not being asked to provide financial advice.

Ms Kirk added: “Employees are saving, but many do not know what those savings will deliver as income in retirement - or how prepared they are for the lifestyle change, from routine and social connection to purpose and identity. Without that clarity, people delay decisions about contributions, careers and retirement timing. Financial uncertainty is no longer just a personal issue; it has become a workforce planning issue for employers.”