Retirement is a major life stage, and during this period financial ease significantly affects the quality of life. A survey conducted by the Central Bank of Ireland reveals varied levels of confidence individuals have regarding their preparedness to retire in line with our askpaul 2nd National Pension Survey
Firstly, it was found that 54% of Irish people who were surveyed as part of a consumer research report conducted by the Central
Bank are concerned about what their pension fund will be valued at when they retire and their retirement income aspirations vary significantly from the projected pension figures.
This indicated the overwhelming lack of understanding regarding money matters after retiring. As many as 79% of respondents from the askpaul 2nd National Pension survey declared that they did not know how much money would be sufficient for them to live comfortably after they had stopped working and retired.
This knowledge gap can lead to significant financial stress and anxiety in later years potentially resulting in inadequate savings or continued reliance on the state pension which 98% of respondents from askpaul’s 2nd National Pension survey called insufficient for retired life.
The askpaul survey revealed that 56% of respondents have less than €100,000 saved, compared to the average amount of retirement savings in Ireland in 2024 of €111,000.
55% of Central Bank respondents said they were passive or disengaged on issues related to pensions and do not know what their future incomes will be during retirement.
This is significantly lower than the askpaul 2nd National Pension Survey of 68% who reported not tracking how their retirement funds are invested, which could put their financial future at risk.
The research shows that most people don’t prioritise retirement and pension planning. Many lack knowledge on this matter and do not actively plan for their retirement, despite having positive ideas about it that are unclearly defined in their mindsets. Therefore, many people feel unsure about their financial well-being after they retire.
Pensions can be seen as complex financial products leading to challenges in understanding pension concepts. The Consumer Research Report by the Central Bank of Ireland shows variations in the levels of knowledge on pensions and retirement planning with uncertainty or lack information expressed by 61%.
This is significantly higher than the 44% of the askpaul followers & subscribers who expressed uncertainty about understanding the available retirement saving options.
For everyone, the way towards achieving financial security during old age is different from one person to another. Although many are hopeful, it’s important we become more engaged in our own futures financially if we want a good quality of life when we retire. A secure and enjoyable retirement can be achieved through focusing on both immediate needs and long-term goals.
askpaul simplifies the pension process by providing practical advice that anyone can follow, helping them secure their financial future.
Book a free no-obligation pension consultation today
Source* Consumer Research Report Pension and retirement income Key challenges for consumers-Central bank of Ireland July 2024
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