CCPC survey shows gaps remain in pension planning
New research shows that significant gaps remain in Irish pension planning, with 38% of people surveyed having no pension in place.
The research was carried out by the Competition and Consumer Protection Commission (CCPC) and comes during Pensions Awareness Week.
When asked by the CCPC the reasons for not having a pension in place, 32% of consumers said they have yet to get around to it, 20% said they feel they are too young and a further 20% said they can not afford it.
23% of those in the 55-64 years age group said they do not currently have a pension in place.
77% of this age cohort said they 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 said they would be using the State Contributory pension to help fund their retirement.
Today’s research also shows that 32% of those questioned were unaware of the amount of the State Contributory pension payment, which is currently €253 a week.
Respondents said they 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.
The CCPC’s Kevin O’Brien said today’s 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,” Mr O’Brien said.
“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,” 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,” he added.