Monday 5 December 2016

Pension provision a worry for workers

Published 08/01/2016 | 02:30

Photo: PA
Photo: PA

ALMOST a third of workers have no plans to retire.

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Many of these are unable to give up work because they have not been able to put enough money aside into a pension, new research has found.

An Irish Life-commissioned study found that 30pc of workers say they do not plan to retire and instead will continue to work for as long as they are able to keep going.

It also found a majority of people worry about not having enough money in retirement.

This is because thousands of private sector workers have lost between five and seven years of pension saving due to the financial crash.

Not having enough money on which to retire on comfortably emerged as the number one worry for Irish households, the study carried out for Irish Life among 2,000 adults by Behaviour & Attitudes found.

Head of retail at Irish Life Gerry Hassett said the fact that retirement was a huge worry reflected the reality of post-financial crash Ireland.

"This reflects the reality that people lost five to seven years of saving for retirement. Meeting household bills took priority," he said at a briefing.

Just 7pc of adults trust the Government to look after them in retirement, the survey found. They have more faith in their employer than the State.

Worries about inadequate pension provision are most prevalent among those aged between 50 and 64.

This was of higher concern to younger age groups.

Mr Hassett said: "Overall, 55pc of those interviewed were concerned that they would not have enough money to retire comfortably, with this of most concern to the group aged 50-64 years (64pc)."

The survey found that the next-most-prevalent worry was not being able to afford important expenses such as children's education or renovations.

A third of people were worried about not being able to meet household debts.

Irish Life, which has one million customers, said it expects equity markets to perform well over the course of this year, despite risks emerging from China.

Irish Independent

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