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People blame high rents for not starting a pension

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LARGE numbers of workers who do not save into a pension blame high rents and other day-to-day expenses for making it too difficult for them to save for their retirement.

The survey, carried out by Matrix Recruitment, found 48pc of adults in this country do not have a pension.

One in eight of those who do not have a pension are relying on a inheritance to see them through their years when they finish up in the workforce.

The good news is that 29pc say they plan to start a pension this year.

And the survey found a majority are in favour of Government’s auto-enrol pension plan.

This is planned for 2022 and will see those who do not have a private or occupational pension automatically enrolled in a scheme with State involvement.

It will supplement the State pension. The state pension age has become one of the hottest topics of debate between the political parties and the electorate ahead of the General Election this weekend.

Some 76pc of those surveyed are in favour of the programme that will automatically enrol all workers over the age of 23, the Matrix Recruitment Pension Survey found.

The scheme will apply to those earning more than €20,000 and without a pension. Their employer and the government will contribute to it.

However, for many people pensions just are not on their radar, said Breda Dooley of Matrix Recruitment.

One in eight of respondents say that they are too young to worry about starting a pension.

Others cite barriers such as the high cost of rent and day-to-day bills.

Not knowing how to start a pension was the response from a number of people.

Ms Dooley said: “The more traditional reasons for people not starting a pension have been well documented. Lack of knowledge, inertia and the assumption that a pension is not relevant are all issues people generally reference.

“But now, according to these findings, we are seeing that a significant number of people without a pension saying that they can’t afford it.”

Of those surveyed who do contribute to a pension, 41pc say that they are not confident that their pension will be enough to live off in retirement, based on current contribution rates.

A further 31pc responded that they simply didn’t know if their pension would be enough for retirement.

More people would start a pension if the process was easier, the survey found.

When it comes to workplace benefits, 93pc perceive an occupational pension scheme to be an attractive perk.

And a majority of those with a pension wish they had started it sooner.

Online Editors