Monday 23 September 2019

One in three older workers 'financially under-prepared for retirement'

Pensions

Many retirees aim to continue working
Many retirees aim to continue working

Michael Cogley

A third of Irish people approaching retirement are financially under-prepared, according to new research from pensions firm Irish Life.

The study of those aged between 55 and 65 who have saved into pensions also found that 36pc did not intend to finish work when they retire.

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Of those choosing to work on, 37pc intend to take up a different part-time role, while 29pc intend to work in their existing job in a reduced capacity. Pensions marketing manager at Irish Life John Groarke also said that the majority of impending retirees were unaware of the "vital decision" they need to make when drawing down.

"For those people who have done the right thing, and saved into pensions throughout their working lives, we want to highlight they still have a very important decision to make as they approach their retirement," he said. "There are significant options to be considered regarding how to convert their hard-earned pension pots into an income and people need to give themselves time to get informed and then to decide on the best option for them."

The research, which was conducted by Red C, also found that 40pc of people were unaware of how much their pension pot was worth.

Around 36pc intend to take a lump sum at the point of retirement while a fifth want to contain their investment in their pension pot. Almost two fifths have more than one pension with just 1pc of respondents saying they have more than five.

The research also delved into the attitudes of respondents about retirement. Red C found that 18pc were "very excited" with another 39pc "somewhat excited". Around 5pc were "very nervous" about what was to come. The study follows on from Irish Life's recent acquisition of independent financial consultancy Acumen & Trust.

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