Almost half of people in Ireland without a pension have either delayed starting one or delayed their planned retirement date due to the cost-of-living crisis, according to a new survey commissioned by Pensions Awareness Week.
The research surveyed more than 1,000 people nationally in late August and early September. It found another four per cent have cashed in their pensions in order to deal with soaring energy and other costs.
Ireland has one of the fastest-ageing populations in the EU. In less than 30 years, the number of those whom the State’s working population will have to support will more than double.
The findings show 43 per cent of people hold no form of pension product, with almost two-thirds (63 per cent) of that cohort reporting they can’t afford to both save for retirement and meet their monthly bills. That figure rises to 72 per cent among those aged 35-49.
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A total of 31 per cent of those without a pension say they have delayed starting a pension due to the rising cost of living, and a further 11 per cent have pushed out their retirement date for the same reason. Another four per cent have cashed in their pensions.
Of those with a pension, the increase in the cost of living has not impacted on retirement savings for the large majority (69 per cent).
However, 18 per cent have either halted their payments, delayed their planned retirement date, reduced their pension contributions or cashed in a pension product due to the cost of living.
The survey, conducted by Behaviour & Attitudes (B&A), also shows that just under two in five (38 per cent) already know they won’t have sufficient money saved for retirement, with the same number believing they will need to work longer than they intended due to an insufficient pension.
Only one in 10 of those without a pension have ever discussed retirement options with their workplace. Even among those with a pension, attention to its performance is low, with one in five having never checked what funds their pension is invested in.
Women are less likely to have a pension than men, with just 48 per cent of women reporting having some form of pension product versus 65 per cent of males.
There is a regional disparity between pension savers, with 63 per cent of people in Dublin holding some form of pension product, a figure that drops to 54 per cent of people living outside the capital.
Fewer than one in five of those without pensions have calculated how much money they need in retirement. Only one in 20 have sought advice from a financial provider on pensions or discussed retirement options with their workplace.
Of those with pensions, just over one in four have checked its current performance and just over one in five have calculated how much money they need in retirement.
Nearly two-thirds of those aged 25-49 are open to hearing about pensions but find it too complicated to understand.
Pensions Awareness Week founder Ralph Benson said: “The research from B&A shows there are two sides to the story of the cost-of-living crisis.
“What’s becoming clear is its long-term effects on people’s financial security. On the one hand there are those who have a surplus each month. Despite the mounting costs of energy and other basics, they can probably survive with just minor tweaks to their finances.
“On the other, we have people for whom the margins are much tighter, and so are being forced to make decisions now that will impact when they can retire and the quality of life they will enjoy when they do.
“This research also reveals that most people haven’t checked the performance of their pension and even fewer know how much they will need in retirement.”
