10 Statistics About Irish Pensions That You Need to Know
When it comes to pensions, knowledge is power. While pensions may seem complicated or even dare we say boring, it’s so important not to bury your head in the sand, because at the end of the day, your retirement depends on it.
Here at Elevate Financial, we’re all about making pensions easy to understand, and providing as many people as possible with the information they need to make smart, informed decisions that will ultimately help them to reach their retirement goals, whatever they may be.
In this blog, we’re sharing some must-know facts and figures about Irish pensions – take a look and see if you fall into any of these categories…
#1: There is currently €500 million of unclaimed pension benefits in Ireland (Source)
#2: Over 1 in 4 people aged between 55-69 have no savings for their retirement (Source)
#3: One-third of the working population aged 20-69 have no pension coverage outside of the State pension (Source)
#4: The most common reason that individuals give for not having a pension is ‘never got around to organising it’ (Source)
#5: Almost 60% of those ages 20-69 who don’t have pension coverage are planning on relying on the State pension as their sole source of income in retirement. (Source)
#6: It’s predicted that average life expectancy in 2029 will be 85.7 for women and 82 for men, while the pension age at that time is set to be 68. (Source)
#7: The average full time wage in Ireland is currently €48,000, while the annual take-home State pension is just under €13,000. (Source)
#8: Ireland is the only country in the OECD that doesn’t yet operate an auto enrolment system to promote pension savings – however, an auto enrolment scheme is due to launch in 2024. (Source)
#9: 43% of 35-54-year olds expect financial hardship in retirement, and over 50% of the population is expected to have some level of debt when they reach retirement age. (Source)
While there are some promising facts and figures here, particularly around the new auto-enrolment scheme for Ireland, the statistics around Irish pensions clearly show that many Irish workers are missing out on the opportunity to be in a better financial position by the time they reach retirement. Relying on the State pension alone, particularly if you have a mortgage or other debts that will need to be repaid into your retirement year is a big financial strain for many, so it’s important to remember that it’s never to late to start a pension fund. On the other hand, even if you’ve had a pension for years, and have changed jobs a few times over the course of your career, you should consider transferring your multiple pension pots into a Private Retirement Bond, which gives you more access and options for investment than if you were to remain a deferred member of a pension scheme.
Whatever your situation may be, you should know all of your options around pensions – if you’d like to talk to one of our Qualified Financial Advisors about pension planning, why not book a free discovery call today. We’d be delighted to help!