'Never too late to take action' - One-in-four Irish adults have no retirement plan
The new study by the CCPC has highlighted major concerns over Ireland's current pension gap
In the midst of the cost of living crisis, it's been revealed more than a quarter of Irish adults (26%) have no financial arrangements for their retirement. its a 5% increase on last years figure which indicates a worrying trend for financial stability for those approaching retirement.
According to the new research, the main factors why adults don't have a retirement plan is place is because of affordability and not getting around to doing it. 25% of the respondents say they can't afford it right now and 19% admitting they simply haven't gotten around to doing it yet.
The research which was conducted by the Competition and Consumer Protection Commission (CCPC) revealed that almost one-third of pension-holders regret not starting their contributions earlier. It also states one in three pension holders actually don't understand how pensions work (36%) with more than half lacking the confidence in their pension's ability to provide a good standard of living in retirement.
Pension ownership in general is lowest amongst 18-24 year-olds at just 18% which is to be expected to a degree. It's far more surprising however, that 21% of those aged between 45 and 54 also reported having no retirement arrangements in place.
The majority (61%) of those with no retirement plans in place are expecting to rely on the state pension to fund their retirement instead. It's a substantial increase from previous figures which were 53% in 2024 and 43% in 2023.
Grainne Griffin, Director of communications at the CCPC said: "This year's research confirms that Ireland's pension gap remains a concern, even among those a decade or two away from retirement, with over a quarter of Irish adults still without any retirement plan in place, and others regretting about not starting sooner. The message is clear, it's never too early, or too late to take action."
Griffin added: "Its really important to take control of your financial future. Figure out how much you'll need in retirement and what you can afford to contribute now. A good rule of thumb is to aim for a retirement income of 50-60% of your pre-retirement income."