Significant gaps remain in Irish pension planning says CCPC
September 20, 2022
- 38% of adults surveyed have no pension plan in place
- 32% say they have “not gotten around to” setting up a pension
- Two thirds are willing to pay automatic pension contributions
The Competition and Consumer Protection Commission (CCPC) has published new research outlining Irish adults’ preparations for their retirement. The research findings show that a high percentage of consumers do not have any pension plan in place. When asked their reasons for not having a pension in place, 32% stated that they have yet to get around to it, 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 that they don’t currently have a pension in place. 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%) stated they would be using the State Contributory pension to help fund their retirement. The research also shows that 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 well-being 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. Pension planning is key to maintaining financial well-being in retirement and it is evident from this new research that many Irish adults do not have the necessary provisions in place to provide for a secure retirement, despite the significant tax reliefs available on pension contributions.
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.”
For more information read the CCPC Pensions Research 2022Return to News