Only one in three private sector workers have a pension, a survey has found, raising further fears about how people will fund their retirement. The Standard Life survey also found that 60 per cent of those without a pension say they don’t know how to start one.
The recent survey of 1,005 adults found that while one in two of all respondents have a pension, when public sector workers are stripped out it leaves just over a third or 36 per cent, of private sector workers with a fund for retirement.
This is in line with figures from the Central Statistics Office (CSO), which last May found that just one in three Irish private sector workers owned a pension. However, while it may appear that two thirds of private sector workers will be relying solely on the State pension to fund their retirement, they may of course have alternative plans, such as inheritance, property and so on.
Financial wellbeing
The low numbers in pension plans can be partly explained by people not knowing how to start a pension, says Brendan Barr, pensions spokesman for Standard Life.
“We have to help people understand how to start one, just how generous the tax benefits are and the importance of taking personal responsibility for their financial wellbeing when they stop earning,” he says.
While companies are obliged to offer their employees access to a pension plan – whether they contribute to this or not – it seems that many workers are unaware of this, and may be letting valuable employer pension contributions pass them by.
“Don’t leave money on the table,” says Barr. “If your employer has an occupational scheme and is offering to contribute 5 per cent or more of your salary per year into your pension scheme – seize it quickly and gratefully”.
