Key Takeaways
- • Fewer than one in three Irish workers expects their pension to be large enough for a comfortable retirement, according to a new AIB report, with the figure falling to just over one in four among women.
- • Over six in 10 workers have never met with an adviser to review their pension arrangements, and close to half of workers over 25 cannot estimate what share of current income they will receive in retirement.
- • Irish workers would ideally retire at 61 but expect to keep working until 66; younger workers aim to retire at 58 but expect to work until 64.
- • An Aviva survey found almost two in three people over 50 fear their retirement savings will not last through retirement.
- • Amárach survey data show 47 per cent of respondents thought about planning a holiday in the past 12 months versus 22 per cent who thought about retirement planning.
Summary
Fewer than one in three Irish workers expects to have a pension large enough to fund a comfortable retirement, according to a new report from AIB. The proportion falls to just over one in four among women, and the report indicates women are in a less favourable position than men across all questions in the survey.
Despite these concerns, most workers are taking little action. Close to half of workers over 25 cannot estimate what proportion of their current income they will receive in retirement, and more than six in 10 have never sat down with an adviser to review their pension arrangements. Ciara Ryan, head of wealth and general insurance at AIB, said reviewing a pension does not necessarily mean contributing more, and can begin with understanding existing arrangements and ensuring they are working as effectively as possible. She said early review gives people more time to address gaps and plan for their desired retirement.
The AIB findings are broadly consistent with a recent Aviva survey, which found almost two in three people over 50 fear their retirement savings, including State pension, workplace or private pensions and investment income, will not last throughout retirement. A similar number of retirees in that study said they would have changed something about how they prepared.
According to the AIB survey, Irish workers on average would like to retire at 61 but expect to keep working until 66. Younger workers have slightly higher expectations but also anticipate a larger shortfall, aspiring to retire at 58 while expecting to work until 64. Respondents are uncertain about what their pension fund will pay but are fairly confident that a shortfall will mean working longer than planned.
Retirement planning competes poorly with more immediate priorities. In the Amárach study of a nationally representative sample of 2,000 adults over 25, 47 per cent said they had thought about planning a holiday in the past 12 months, compared with 22 per cent who had thought about planning for retirement.
Despite these concerns, most workers are taking little action. Close to half of workers over 25 cannot estimate what proportion of their current income they will receive in retirement, and more than six in 10 have never sat down with an adviser to review their pension arrangements. Ciara Ryan, head of wealth and general insurance at AIB, said reviewing a pension does not necessarily mean contributing more, and can begin with understanding existing arrangements and ensuring they are working as effectively as possible. She said early review gives people more time to address gaps and plan for their desired retirement.
The AIB findings are broadly consistent with a recent Aviva survey, which found almost two in three people over 50 fear their retirement savings, including State pension, workplace or private pensions and investment income, will not last throughout retirement. A similar number of retirees in that study said they would have changed something about how they prepared.
According to the AIB survey, Irish workers on average would like to retire at 61 but expect to keep working until 66. Younger workers have slightly higher expectations but also anticipate a larger shortfall, aspiring to retire at 58 while expecting to work until 64. Respondents are uncertain about what their pension fund will pay but are fairly confident that a shortfall will mean working longer than planned.
Retirement planning competes poorly with more immediate priorities. In the Amárach study of a nationally representative sample of 2,000 adults over 25, 47 per cent said they had thought about planning a holiday in the past 12 months, compared with 22 per cent who had thought about planning for retirement.
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