An Irish Life-commissioned study has found that 30% of employees say they do not plan to retire and instead will continue to work for as long as they are able to keep going. Many of them have to keep working as they have not made provision for their retirement and will have to depend on the State Pension ( € 233.30 since 1st January )
The report also found that the majority of people worry about not having enough money in retirement. The main reason for this is because thousands of private sector workers have lost between five and seven years of pension saving due to the 2007/8 financial crash.
Not included in the study was the question whether the government of the day will actually be in a position to pay the equivalent of today’s State Pension ( € 233.30 per week ) to the 1.8million pensioners over the age of 68 in 2050. John Lowe, The Money Doctor, has consistently warned that lower birth rates and increasing life expectancy will in the future put an unbearable strain on the present scheme. “In 2010 there were 420,000 over the age of 65. For every person retiring there were 6 workers. Today there are 677,000 over the age of 66 and in 2050 there will be 1.8million pensioners and for every person retiring then, there will be 2 workers. We are sitting on a pension timebomb and I urge all adults over the age of 18 to review their retirement planning now and not leave it to the government of the day to provide your pension when you do retire. They may not be able to.”
The study carried out among 2,000 adults by Behaviour & Attitudes on behalf of Irish Life found that not having enough money on which to retire on comfortably emerged as the number one worry for Irish households. Gerry Hassett, Head of Retail at Irish Life, said “The fact that retirement was a huge worry reflected the reality of post-financial crash Ireland. This reflects the reality that people lost five to seven years of saving for retirement. Meeting household bills took priority.”
Other facts emerging from the study included :
- Only 7% of adults trust the Government to look after them in retirement.
- They have more faith in their employer than the State.
- Worries about inadequate pension provision are most prevalent among those aged between 50 and 64 (64%). This was of higher concern to younger age groups.
- Not being able to afford important expenses such as children’s education or renovations.
- 33% of those surveyed were worried about not being able to meet household debts.
Irish Life, which has one million customers, said despite the risks emerging from China, it expects equity markets to perform well over the course of this year.