75% fear state pension won’t be enough

THREE out of four people without a private pension fear they will not be able to survive on the state supports once they retire.

And 80% of people think the Government should introduce mandatory pension plans to provide for the aging population.

This emerged in research conducted by Red C on behalf of the National Pensions Board.

It asked more than 1,000 people about their own pension provisions and if the Government should introduce laws to ensure there is enough money to cover the needs of workers when they retire.

It revealed a paradox in people’s attitudes, especially among those without a private plan.

Although three-quarters of respondents felt the state pension would not be enough to support them in later life, 40% have no plans to sign up to a back-up scheme in the next three years.

Head of the Pensions Board’s information service, David Malone, said people need to take more responsibility for their futures. Those without a pension should act urgently. “The fact that so many people without a pension acknowledge they will not be able to sustain their current lifestyle on the state pension alone after their career ends, yet they are still inclined to long-finger and postpone addressing the issue.

“The longer you take to begin a pension the greater the financial pressure later in your career to put enough away to maintain the standard of living enjoyed while in employment. I strongly urge those without pensions to stop putting it off and sign-up to a plan today,” he said.

Mr Malone was speaking during Nation Pension Action Week.

Tomorrow the board will turn its attention to promoting pensions in the hospitality sector which has the lowest coverage of all industries.

The Red C research also revealed widespread ignorance about tax incentives available to those who take out a private plan.

Mr Malone said every worker should log on to www.pensionsboard.ie and use the online calculators to estimate what they need to put away.

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