Most worry retirement savings are not enough
ONLY 25% of pension holders are confident they will have enough money to retire comfortably, a survey has found.
The research by Bank of Ireland found that 67% of pension holders are worried they are not saving enough and just 37% know what their pension will provide.
Only 15% of the pension holders sampled said they were happy with the amount of cash they are setting aside. Only 21% have ever sought advice on their pensions and 82% want easier-to-understand retirement planning.
As the cost-of-living crisis has led 73% of people to prioritise everyday spending over saving for their financial futures, fewer people are able to plan ahead for their pension. Bernard Walsh, head of pensions and investments at Bank of Ireland, said: ‘Everyone’s financial wellbeing is dependent on making the right choices to suit their budgets, and the sooner people can start on this journey, the better. My advice to everyone is that pensions are always a good investment in yourself, no matter what age you are.’
With more than 20%, of respondents saying they have never sought financial advice over their pensions, Mr Walsh emphasised the bank’s efforts to address this with free Pension Pot webinars. He said ‘there is clearly an appetite there’ to make people aware of available flexible pension options.
The online study by RED C had a sample size of 1,018 Irish people aged 18 and above, and took place between July 7 and 13 this year. It was discovered that 8% of those surveyed are intent on living in the here and now and spending the money they earn.
On Tuesday of last week, Minister for Social Protection Heather Humphreys announced that although the pension age will remain at 66, people will be given the option of working until 70 and the pensions of those who then retire at that age will be worth an extra €3,000 per year. People who leave work at 66 get a weekly rate of €253, but those who work until 70 will receive €315 per week.
The plan, due to kick in from 2024, will also see long-term carers get a pension for the first time. Responding to Sinn Féin leader Mary Lou McDonald’s criticism that the Government was trying to make people work until the age of 70, Taoiseach Micheál Martin said: ‘People will still be able to retire at 66, pull down their full pension in the same way as they can today.’
Seán Moynihan, CEO of elderly support charity Alone, has previously said the option to retire is ‘disappearing’.
‘People can still retire at 66’