Irish people just can’t get enough of work – they stand out in their willingness to work beyond retirement age when compared to their European peers, a new survey has found.
The survey, by Aviva, found that 46pc of Irish people said they would like to work full-time or part-time after they retire. This compares to 34pc of British people and just 22pc of French people. However, many retired people run into trouble finding work in retirement because of their age, Aviva’s research has found.
Furthermore, many people believe they will have to work beyond retirement to make ends meet. Almost two out of three of those aged between 45 and 54 are concerned they won’t be able to afford an adequate standard of living in retirement, according to the survey. More than half of those in this age group believe they will have to work beyond normal retirement age so they can make ends meet. The “normal” retirement age is now 66 – if you take that age to coincide with the time you can get the State pension currently € 233.30 per week.
John Lowe the Money Doctor said “It is difficult for young people to grasp the gravity of the pension time bomb. The vast majority of young people only have enough to live on, let alone take holidays, buy cars and have all the luxuries that advertisers would like them to have. How many in their late 20s can even afford to leave home ? They certainly do not realise that there is a possibility that by the time they retire, the government of the day will not have the money to pay that State Pension ! The ideal of course is to encourage young people now to at least start a pension no matter how small – the younger the better.”
Despite the worry that they will financially struggle when they retire, most people aged between 45 and 54 have not taken steps to ensure their income doesn’t fall short when they retire, the survey found. One in three of those who have yet to retire believe that people will only save for retirement if they are forced by the law to do so.
“If people want to enjoy a work-free retirement, then it is imperative that they start contributing to a pension at a much earlier age,” says Mark Reilly, Aviva’s pensions product manager. “Our research shows that just 21pc of young workers report to be regularly setting aside money for their retirement. “If you start saving for your pension at the age 25 and you would like to retire with a pension that is equivalent to 50pc of your pre-retirement income at age 65, you would need to be saving about 40pc of your income each year.
“But if you were to leave it until you’re 45 to start saving, then the percentage of your income that you would need to save jumps to nearly 77pc”