More than a third of Irish adults have no pension plan in place, new research from the Competition and Consumer Protection Commission (CCPC) has found.
Some 23 per cent in the 55-64 year old age group said they do not have a pension in place, despite being in the age group that could retire in the next decade.
The study highlighted gaps in pension planning here, the organisation said. Some 32 per cent of those who have not yet made arrangements said they hadn’t got around to setting up a plan for the future, while a fifth of people said they couldn’t afford it. A further 20 per cent felt they were too young.
However, two-thirds would be willing to pay automatic pension contributions, the research found.
Among the 55-64 age group, more than three-quarters are depending on the State contributory pension as a way of funding their retirement. Overall, two third of adults said they would use the State pension to fund their retirement, but 32 per cent did not know how much that pension payment — currently €253 a week — was.
Other ways of supporting retirement included selling a property, with 24 per cent planning that strategy. A further 23 per cent said they were depending on rental income, with 15 per cent planning to use equity release. Some 14 per cent said they would sell a business. In the 25-34 age group, a third said they would use funds from the sale of a property or income from a rental property.
The CCPC’s Kevin O’Brien said the research raised concerns around the long-term financial wellbeing of consumers.
“Pension planning is key to maintaining financial wellbeing 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,” he said.
“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.”
