76% ‘in denial’ about pension funds shortfall
Research by insurer Aviva Ireland has claimed that, despite the country’s perilous financial position, the majority of people who are within 10 years of retiring do not have the savings or private pension income to meet their needs.
The study — based on research across seven European nations — said 76% of Irish people surveyed are “in denial” about the health of their personal finances, which are continuing to be hit by government cutbacks.
The study also found that almost two out of three people in their early 50s are planning to work past the age of 65 to cover their costs when they retire.
It added that an equally concerning shortfall is occurring at the other end of the age spectrum, with more than half of 18- to 34-year-olds also failing to plan for the future, which will place further pressure on the state’s fragile finances.
“In 2010, Aviva identified a pension gap of €1.9 trillion across the EU27, yet our latest research shows that Europe, including Ireland’s population, continues to be in denial about this problem,” said Peter Towers, Aviva’s managing director of life and pensions assurance.
“The Irish pre-retired generation, those aged 55-plus and not yet retired, are anxious about their current situation,” he said.
“Many are relying on the state pension and other assets to provide the level of income they need to turn this retirement dream into reality.”
The group’s Mind The Gap survey, conducted with the Futures Company, also found that:
* 34% of those nearing retirement believe they need all of their monthly income to be comfortable in their retirement.
* 56% of these people are more pre-occupied about day-to-day expenses than their retirement and are concerned they will not have enough money for a decent standard of living in later life.
The pensions research findings were replicated in the six other participating countries: France, Italy, Spain, Poland, Russia and Turkey.
CONNECT WITH US TODAY
Be the first to know the latest news and updates
