Tuesday 21 August 2018

Optimism is growing over finances in retirement

(Stock photo)
(Stock photo)
Charlie Weston

Charlie Weston

There has been a rise in the number of people who feel they could live a financially comfortable retirement.

The Bank of Ireland/ESRI Retirement Optimism Index, which tracks how confident people feel about their financial prospects in retirement, increased to 104 points in May.

This is the highest since the launch of the index at the end of last year and is surprising, as most pension experts feel that many people are poorly prepared for retirement.

Some 1.2 million people have no supplementary pension and will depend on the State pension.

Those retiring after 2028 will have to wait until they are 68 to receive the State pension.

However, the results show that 57pc of Irish people have some financial plan in place for retirement.

Preparedness

And it is not just older people who are satisfied with their preparedness for retirement, as they are considered to have the last of the good pensions.

Almost half of those under the age of 50 answered that they had some retirement planning in place. Overall, one third felt that it would be easy to live comfortably in retirement; again, this increase was led by the under-50s.

Less than a third of under-50s felt that they could live comfortably in retirement, slightly lower than the 34pc response for over-50s.

Tom McCabe, of Bank of Ireland Investment Markets, said the results showed that improving household finances were enabling people to consider longer-term retirement planning.

Irish Independent

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