PENSION RENTAL INCOME IS POPULAR

One in four people in the 55-64 years age group — people who may expect to retire in the next decade — doesn’t have a pension in place, according to recent Competition and Consumer Protection Commission research.

Three out of four in this age cohort expect to qualify for the contributory State Pension as one way of funding their retirement. Of the 735 adults who took part in the research, one in three was unaware of how much the State Pension payment is (currently €253 per week, rising to €265 from January 2023).

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, CCPC member, commented: “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.”