More than half the working population is unaware of the tax benefits that can be gained by saving into a pension scheme, according to a survey commissioned by Hibernian Life and Pensions.
The survey showed that just 25 per cent of Irish adults have made provision for their retirement. This means that three-quarters of the future elderly population could end up relying on the State pension. "Without doubt, pensions will be the house price crisis of the 2020s, the topic of dinner conversation," said Mr Ian Veitch of Hibernian.
A new form of pension - Personal Retirement Savings Accounts (PRSAs) - will be available later this year. Hibernian's research shows that only 18 per cent of people are aware of PRSAs, which will target those who are not benefiting from membership of an occupational scheme. The flexible pension product will be available to the self-employed, the unemployed and parents working in the home.
PRSA products will be sold by banks, life assurance companies and other regulated investment firms and are likely to be available in December. Hibernian's PRSA Guide is on 1850 20 20 52.
