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Dublin: 13 °C Monday 20 May, 2013

Half of adults believe state pension will be main source of retirement income

People are also more inclined to hold this view the older they get.

Image: meddygarnet via Flickr/Creative Commons

47 PER CENT of adults in Ireland believe that they’ll be heavily reliant on state pensions, a nationwide survey has shown.

The Irish Association of Pension Funds (IAPF), which commissioned the survey, also found that nearly one third more females than males hold this view, at 53 per cent versus 40 per cent.

At 27 per cent, just under one in three adults believe that their private pension will form their main income once retired.

Lower again are those who believe that personal savings will form the basis of their retirement income, at only 15 per cent.

Speaking of the findings, the CEO of the IAPF, Jerry Moriarty, believes that these figures are reflective of Ireland’s “notoriously poor” pension participation, which he says were also low “at the height of the good times”.

He also believes that today’s results show that less people are actively involved in setting up their own pension:

When we consider that a high percentage of these people are in the public sector, where pensions come as part of the employment package, then we see that those actively involved in setting up their own pension and saving for their retirement is relatively low.

Speaking to TheJournal.ie, Moriarty believes that while people are “struggling to deal with short-term issues,” they still need to consider the fact that they are now living a lot longer than before, and “don’t want to live out their retirement in poverty.”

Saying that “the sooner you start, the quicker it accumulates,” Moriarty believes that younger people are less inclined to think about pensions:

Results have shown that where people believe their income will come from in retirement is largely dependent on the current age of the individual – the older people get the more they believe they will have to rely on the State pension as their primary source of income.
In fact, the number of respondents that believe they will be able to live independent of the State pension drops from 80 per cent to 50 per cent by the time they have started a family, as the reality of the cost of funding children for their first quarter century hits home.

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Comments (22 Comments)

  • One of my biggest gripes with private pension funds is that the fund managers continue to take their 5% or whatever cut of the annual payments regardless of performance,

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  • I don’t trust the state with anything related to my finances. Sura there probable won’t be a state pension when I retire, probable be made mandatory to have a private pension.

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  • We all need some type of nest egg to supplement the govt oap,the illegal assault on the private pensions were a disgrace and a disincentive to have one, but still need to set one up.

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  • If there’s anyone under 50 who still believes there’ll be a universal State pension waiting for them when they retire, I’d like to sell them an island on the moon. Please enquire to LeD@snakeoil.com

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  • The Argentinians government gave the population a choice a few years ago, keep the public pension or have that money in a private pension account. The average value of a pension rose by 6% and provide much needed funding for private industries who in turn decreased the unemployment and poverty rates significantly. It also gave people the feeling of being in control of their own retirement.

    Reply
  • if you depend on the state pension, you will be living below the poverty line. Goods and services will continue to rise exponentially, your pension will not. The longer you live the poorer you’ll get.

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  • why we do not trust Pension schemes……

    Irish Pension fund mangers are the BEST paid in the WORLD regardless of how they preform (like our politicians)

    the fear of the Govt placing another levy (double taxation) on your private pension.

    Pension fund Mgrs invest in what ever they get paid the most brown envelopes to invest in.

    when the dollar goes,,,,,,,,,,, your pension goes,,,,,,,,

    Buy gold that should be your retirement fund

    Reply
  • Bonzi 20/08/12 #

    state pension is 230.30 per week… age will be increased to 68 for anyone born from 1960 inclusive. if you want a comfortable retirement you cannot rely on the state.

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  • The state pension is a pittance, I could not live on one pittance a week

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    • The state pension is far from a pittance, it is 219 euro per week. This is only taxed if you have other income over 200 euro per week on top of the pension. There are also various other benefits like fuel allowance etc. Generally retired people have already paid their mortgages off and if they have children they are grown up and no longer dependent on the retirees. So the pension is plenty.

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    • there no fuel allowance etc and household service package on means tested, if the last census to go by there more and more adults returning home as relationship break ups and unable to pay the mortgage, once again the generation before us are giving up more and more so it’s not plenty.

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  • Rob 20/08/12 #

    So why do we continue allowing drastic tax cuts for the wealthy? Why we support an unfunded pension plan? I would also like to know how FG thinks we can balance the budget and address the deficit by cutting taxes on the wealthy and gutting the social safety net? How does Kenny propose to grow the economy if we do not invest in education and infrastructure? How can we grow GDP if we continue to cater to the very well off at the expense of everyone else? I would like him to explain how his math works and why it will take years, according to his plan, to finally balance the budget, and if he feels that increasing the deficit short term will spur economic growth even though his plan does nothing to address the income inequality in Ireland? Finally, he can tell the country why he can justify the increasing number of poor people in the richest country in western europe, and why he believes his economic plan will address and solve the problem?

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    • Rob, who are these rich people you go on about? Somebody before said that anybody earning over €100,000.00 is rich. If you earn €100,000.00 per annum you will pay €40,867 in direct taxation assuming they are single, quite the chunk of change wouldn’t you agree.

      Reply
  • How would a pension scheme work for a person intent on emigrating ? I work here, but I intend on moving abroad within the next 1.5 to 2 years. If I were to start a PRSA or pension plan now here in Ireland, how would it work out if I am settled elsewhere ?

    Reply
  • Jeff 20/08/12 #

    L.O.L… suckers…

    Reply

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