Tuesday 22 August 2017

One in four don't know how much the State pension is, although one in two will depend on it

New research shows that one in four don't know how much the state pension is... although one in two will depend on it. Photo: PA
New research shows that one in four don't know how much the state pension is... although one in two will depend on it. Photo: PA
Amy Mulvaney

Amy Mulvaney

New research shows that 27% of adults don’t know how much the State pension is, although 44% will depend on it as their only form of income.

Furthermore,  nearly three quarters of those without a private pension said that they are “not confident” of having sufficient income at retirement.

An analysis run by Friends First shows that the State pension of €11,960 per year (€230 per week) leaves just €40 disposable income per week following the cost of living, which would barely cover a daily cup of coffee and newspaper.

The survey of 1,000 people revealed that only 30% of adults believe they would live comfortably on the current State pension.

A further 31% haven’t yet thought about what they will live on when they retire, while  55% state their reason for not having a pension as “can’t afford it.”

“We are seeing in the study that people are living increasingly busy lives and their focus is less on securing their financial future and more on short to medium term needs. But, sleep walking into retirement can only lead to a rude awakening,” said Simon Hoffman, Director of Pensions and Investments with Friends First.

“Not only is there is a critical need for people to start a pension, it is vital that they are fully engaged with their pension planning and management on an ongoing basis in order to achieve their financial goals in their golden years.”

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