Just over 50% of Irish people understand exactly how pensions work

Just over 50% of Irish people understand exactly how pensions work

New national research on pensions commissioned by Bank of Ireland has revealed that 51% of those surveyed understand exactly how a pension works.

The nationwide poll, carried out in October, found that over a third (35%) of respondents believe that they have sufficient funds in their pension pots to allow them enjoy a comfortable retirement, in contrast to 33% of those surveyed expressing fears about having started their pensions too late. 

The survey revealed that people aged between 25-34 are leading the way in starting a pension, with 31% having already started contributing towards one, and another 19% in the 18-24 cohort currently paying into a pension plan.

The vast majority of those surveyed (83%) think that people with no pensions in place should be allowed remain in the workforce after retirement age. On the issue of auto-enrolment, nearly three-quarters (72%) of respondents want the Government to introduce mandatory pension savings for all Irish workers aged 18+, a notable figure given the latest Government moves on the issue.

Bank of Ireland say pension holders represent 52% of the total population, with the research revealing that eight per cent more males than females have a pension and make regular contributions. Despite the gender disparity in pension ownership, women (€261) make a higher monthly pension contribution than men (€254), with €257 being the average monthly amount contributed.

Over two thirds of pension holders are fully aware of the current value of their pension, with 40% confident that their current pension provides them with the best return on their investment.

Commenting on the research, Head of Pensions & Investments at Bank of Ireland, Bernard Walsh said, "While a good proportion of respondents have started their pension within a good timeframe, a similar number feel they may have started too late. Our message is that it’s never too late to start a pension and even small amounts which are increased over time can make a difference to your retirement. At this time of year it pays to think about starting a plan or modifying your existing one, and I would encourage anyone thinking of doing so not to put it off any longer."

Source: www.businessworld.ie