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A total of 44% of those without a private pension say they will rely solely on the State, up from 40% last year and equating to around 890,000 people. Irish people are relying increasingly on the State pension as their ONLY income in retirement – just as doubts grow about the sustainability of the weekly retirement payment. A further third say they haven’t thought about what they will live on in retirement, according to the Friends First annual Pensions Index survey.
One in 10 said they would invest in a pension when asked what they would do if their disposable income increased, compared to 15 per cent who would spend the money on a holiday and 25 per cent who plumped for home improvements. Even with this, just over three-quarters of all respondents said they were not confident that they would have sufficient income in retirement. Among those who do have pensions, the survey found that the recession era trend of reducing contributions appears to be at an end, with 20 per cent increasing their premiums.
John Lowe the Money Doctor said “The number of people opting to rely on the State pension will put a huge strain on the State in the coming years as those without a private pension may struggle financially in their retirement and will be depending on a pension that is less than the current minimum wage. In 2010 for every person retiring, there were 6 workers. In 2051, for every retiree there will be 2 workers ! At that point we will have 1.8million people over the age of 65. Do you really believe the government of 2051 will have the funds to maintain pension payments ? Act now whatever age you are.” Only one age group reported growth in pension provision – the 25-34-year-old cohort, where 39 per cent now have a private pension plan, up from 36 per cent last year.

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