Three out of four people do not understand the tax reliefs available for putting money into their pension, according to consumer research carried out by Irish Life and Permanent.
According to IL&P this suggests Government policy is failing to encourage people invest in their pensions and that the system currently in place is confusing.
The findings were part of a survey of 1,200 adults, and only 25 per cent of those surveyed said they fully understood the pension system. This compared to 56 per cent of respondents who said they understood how the SSIA savings scheme worked.
The research asked consumers without a pension whether they were likely to take one and just 25 per cent said they were likely to do so. By contrast 58 per cent said they were not likely to start one this year. There was also little support for mandatory pensions.
The research was carried out as part of a briefing for IL&P businesses for this year. The lender expects house price growth to slow dramatically to between 4 to 6 per cent in 2007. Property investments are expected to generate between 2 and 3 per cent a year over the next 3 years.
With 57 per cent of all SSIAs due to mature in April research by IL&P suggested that as many as 64 per cent of SSIA holders wish to continue.
IL&P has also noticed a change in car finance trends with consumers increasingly buying
more exclusive and expensive cars and SUVs.