Thursday 8 December 2016

One-third of workers have no intention of retiring

Published 15/04/2016 | 02:30

Gerry Hassett, Managing director of Irish Life Retail. Photo: Conor Healy Photography
Gerry Hassett, Managing director of Irish Life Retail. Photo: Conor Healy Photography

Almost one-third of workers have no plans to retire, and will continue to work as long as they are able to, research commissioned by Irish Life shows.

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Only half of workers are in a pension plan, with most of these only saving 10pc of their salary.

The Irish Life-commissioned research found that most people start a pension in their 30s.

Damian Fadden from Irish Life Corporate Business said: "We know from our research that only half of people working in the private sector are in a pension plan, that the average contribution rate in defined contribution schemes is just 10pc. The average starting age in a workplace pension is in the mid-30s - so there is a mountain to climb."

Managing director of Irish Life Retail Gerry Hassett told a conference organised by the company that people were living longer.

"The good news is recent research shows that life expectancy is on the rise, with 50pc of females currently aged 65 years having a 50pc chance of living beyond 91, and as many as 25pc likely to live beyond 97 years.

"For males aged 65, the figures are lower with 50pc expected to live past 87, and 25pc of these beyond 93 years."

The Irish Life research also found that 30pc of people said they had no plans to retire, and would continue to work as long as they were able.

Nearly half of this number were already over 65 years, highlighting the lack of preparedness for retirement by our current older population, according to the survey carried out by Coyne Research on behalf of Irish Life.

The total sample of 1,001 adults surveyed was representative of the national population in Ireland, Coyne Research said.

Younger people are more optimistic, as almost two-thirds of 24-35 year olds have no plans to work at all after retirement.

Pension

The new research comes as pension funds in this country enjoyed a strong month, with funds gaining 1.3pc on average. However, on a quarterly and annual basis, returns are in the red.

According to figures from Rubicon Investment Consulting, the top performing Irish managed pension fund during March was Setanta Asset Management, with a return of 2.4pc. Merrion Investment Managers was bottom of the table with zero return.

Despite the rises in March, 2016 overall has been a gloomy year for pensions, with funds down 3.7pc on average over the first quarter. On an annual basis, pension funds are also in the red, down by 7pc on the year.

Irish Independent

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