More than one-third of adults have no pension plan in place, survey finds
Almost a quarter (23%) of those in the 55-64 years age group — those who may expect to retire in the next decade — reported they do not currently have a pension in place.
More than one-third of adults have no pension plan in place, a new survey has found.
One-fifth of those say they simply can not afford to put extra money aside, according to new research by the Competition and Consumer Protection Commission (CCPC).
The findings show 38% of adults have no pension plan in place.
Some 32% say they have “not gotten around to” setting up a pension, 20% feel they are too young and a further 20% don’t feel they can afford it.
Almost a quarter (23%) of those in the 55-64 years age group — those who may expect to retire in the next decade — reported they do not currently have a pension in place.
The majority — some 77% — of this age cohort expect to qualify for the State contributory pension as one way of funding their retirement.
Of the 735 adults who took part in the research, two-thirds (66%) said they would be using the State contributory pension to help fund their retirement.
The research also shows 32% of those questioned were unaware of the amount of the State contributory pension payment — currently €253 per week.
Respondents intend to supplement their pension plans with a variety of other forms of retirement funding, including selling a property (24%), rental income (23%), equity release (15%) and selling a business (14%).
One third of those aged 25-34 expect to use funds from the sale of a property or income from a rental property as a source of funding in retirement.
Kevin O'Brien, member of the CCPC, said: "This research suggests a lack of provision for adequate retirement income among a considerable cohort of Irish adults.
"It raises concerns therefore around the long-term financial wellbeing of consumers, with 38% having no pension in place.
"Of those surveyed, many cite the time to set up a pension or being too young as barriers to making pension provisions.
"Two thirds of consumers surveyed indicated that they would be willing to pay automatic contributions into a compulsory pension scheme.
"This is positive news, with pension auto-enrolment set to be introduced to Ireland in 2024, which will see employees automatically enrolled in a workplace pension scheme which will be co-funded by their employer and the State.”
The findings come as it has been reported the Government is to sign off on an overhaul of the State pension system that will see people who continue to work until they are 70 get increased weekly payments.
Under the plan, the official State pension age will remain at 66, but those who work until they are 70 will get pensions of up to 24% more upon retirement, with payments rising by approximately 5% for every year worked beyond 66.
Based on the current State pension of €253.30, someone who works until they are 70 would get almost €315 per week.
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