Government faces tough task to avoid pensions time bomb
Irish Association of Pension Funds chairman John Feely said thousands of those in defined contributions schemes are probably not saving enough. While it is impossible to be precise, Mr Feely said anecdotal evidence suggests that people typically in defined contribution schemes are not putting enough money into them.
To ensure an adequate retirement income someone under 30 needs to be putting away between 10-15% of annual salary if they want to have two-thirds of their basic salary on retirement. Someone over 40 who gets involved in pension cover would need to put up to 24% of their annual salary aside to make up the lost ground of earlier years, he said.
