Business Irish

Wednesday 25 April 2018

Employee pension participation up - survey

Sarah McCabe

Sarah McCabe

EMPLOYEE participation in pensions is up, despite the economic situation.

New research shows that 71pc of Irish employees are now investing in a pension – up from 67pc a year ago and 63pc in 2011, according to research from Friends First.

“Despite all the doom and gloom out there our research indicates that there is a growing appetite among employees for a suitable pension solution” said pensions director Simon Hoffman. “We have been conducting this research for a number of years now and consumers are consistently telling us that although money is tight, simplifying the system and improving accessibility are the most effective ways to encourage greater private pension participation.”

The research also revealed a major lack of understanding on the issue. Some 13pc of the 1,000 people surveyed by researchers at Friends First said they did not understand pensions.

Friends First said this indicates a need for auto-enrolment plans.

“We have been conducting this research for a number of years now and consumers are consistently telling us that although money is tight, simplifying the system and improving accessibility are the most effective ways to encourage greater private pension participation” said Mr Hoffman. “The introduction of a flexible auto-enrolment scheme, similar to other jurisdictions could certainly provide an answer.  It is now time to make decisions and to introduce a complete solution rather than the piecemeal approach we have adopted in the past.”

Online Editors

Business Newsletter

Read the leading stories from the world of Business.

Also in Business