Just 25% of pension holders believe they will have enough money to retire comfortably, according to a new pensions survey.
Of the pension-holders polled by research consultancy Red C for Bank of Ireland, 67% said they are worried that they are not saving enough and only 37% have any idea what their pension will actually provide them with when they retire.
The survey also found that over half of people (53%) polled would still advise their future selves to “start saving as early as possible in order to prepare for a comfortable retirement”.
Some 82% of respondents believed retirement planning should be made easier for them to understand, while 8% said they were just happy to carry on living “in the here and now and on spending the money they earn”.
The findings of this survey come just a few days after a survey carried out for the Competition and Consumer Protection Commission (CCPC) which found that more than one third of adults have no pension plan in place, while one fifth of those say they cannot afford to put extra money aside.
Almost a quarter of those in the 55-64 years age group — who may expect to retire in the next decade — reported that 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.
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.
The Bank of Ireland pensions survey comes as the pensions market in Ireland is facing a major shake-up.
This is because a number of large international pension providers — Royal London and Vanguard — are planning to launch their own products in Ireland.
When they do, it could lead to greater competition in a €7.5bn pensions market dominated by Irish Life, Bank of Ireland, Zurich Life, and Aviva Life and Pensions — and lower pension charges.
Last week, the Government signed off on its major pension reform plan which will see the retirement age staying at 66, but allowing people to continue to work if they choose.
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.
At present, the current state pension is paid at €253 a week for people who retire at 66.
Under the new flexible model, those who work on will receive a higher payment when they eventually do retire.
If you work until you are 67, your weekly pension will be €266; it will be €281 if you retire at 68; €297 if you retire at 69, and €315 if you retire at aged 70.
The measures were in response to recommendations from the Commission on Pensions.