The Government has been trying to encourage people to become more actively involved in looking after their own finances, and at the very least to start saving as early as possible for retirement. Although the level of pension coverage in Ireland is high compared with other EU countries, there is still some way to go, particularly among younger people. Some, such as Hibernian Life and Pension's managing director, Mr Grant Barrans, have called for a system of compulsion similar to the Australian system, whereby people who don't have pensions are taxed more than people who do.
What makes so many people unconcerned about personal finance responsibility?
According to Mr Alvin Hall, presenter of the BBC TV Your Money or Your Life programme and author of Money for Life: Everyone's Guide to Financial Freedom, there are a number of damaging money myths that people still cling to. These include:
The myth of false optimism: Some people chose to ignore their personal finances because they believe that as long as they have enough to cover their expenses today, they'll be OK tomorrow.
The ostrich myth: Others say they would like to have more control over their personal finances but feel overwhelmed by the vast amount of choices and information available. They become frozen, intimidated or distracted, and in the end do nothing.
The nanny myth: The stubborn belief that someone, or something - lottery winnings, a family inheritance, your employer, the government, your beloved childhood nanny - will take care of your financial needs for ever.
The prince charming/toy boy myth: The belief that a sexy, rich, honest Ms or Mr Right is about to appear around the corner, pick you up in his/her Ferrari and spirit you away to a life of glamourous leisure at his/her Monte Carlo palazzo.
The lion in winter myth: Also known as the "it's too late to change" myth. These fatalists believe they are too old or stuck in their ways to learn new tricks, like how to save for retirement.
The "smart investor" myth: Those speculators always on the lookout for a quick killing by trying to beat the odds, hit the right lottery number . . . etc.
