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Tuesday 25 October 2016

We'd rather work after retirement than save for it

Published 08/11/2015 | 02:30

We'd rather work after retirement than save for it
We'd rather work after retirement than save for it

Irish people just can't get enough of work - they stand out in their willingness to work beyond retirement age when compared to their European peers, a new survey has found.

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The survey, by Aviva, found that 46pc of Irish people said they would like to work full-time or part-time after their retire. This compares to 34pc of British people and just 22pc of French people.

However, many retired people run into trouble finding work in retirement because of their age, Aviva's research has found.

Furthermore, many people believe they will have to work beyond retirement to make ends meet.

Almost two out of three of those aged between 45 and 54 are concerned they won't be able to afford an adequate standard of living in retirement, according to the survey.

More than half of those in this age group believe they will have to work beyond normal retirement age so they can make ends meet. The "normal" retirement age is now 66 - if you take that age to coincide with the time you can get the State pension.

Despite the worry that they will financially struggle when they retire, most people aged between 45 and 54 have not taken steps to ensure their income doesn't fall short when they retire, the survey found.

One in three of those who have yet to retire believe that people will only save for retirement if they are forced by the law to do so.

"If people want to enjoy a work-free retirement, then it is imperative that they start contributing to a pension at a much earlier age," says Mark Reilly, Aviva's pensions product manager. "Our research shows that just 21pc of young workers report to be regularly setting aside money for their retirement.

"If you start saving for your pension at the age 25 and you would like to retire with a pension that is equivalent to 50pc of your pre-retirement income at age 65, you would need to be saving about 40pc of your income each year.

"But if you were to leave it until you're 45 to start saving, then the percentage of your income that you would need to save jumps to nearly 77pc."

Sunday Indo Business

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