A recent survey by the Competition and Consumer Protection Commission (CCPC) has revealed that 21 per cent of adults have no financial arrangements in place for retirement, marking a four percentage point increase from last year.
The research also highlighted that the lack of provision rises to 28 per cent among adults aged over 55, just a decade or two away from retirement.
Despite this, 60% of adults reported having a pension, a figure consistent with last year’s findings.
Grainne Griffin, the CCPC’s director of communications, emphasised the persistent gap in pension planning, particularly among older workers, and urged those over 30 to start a pension, even with small contributions.
Affordability is a key barrier, with nearly one-third of respondents citing it as the main reason they haven’t set up a pension.
A quarter admitted they simply hadn’t gotten around to arranging one. Furthermore, 69 per cent of respondents indicated they plan to rely on the State pension for their retirement income.
More than half of those surveyed plan to use personal savings to fund or supplement their retirement, potentially missing out on the tax advantages of pension plans.
Regarding homeownership, 69 per cent expect to own their homes outright by retirement, while 11 per cent anticipate renting, and 6 per cent believe they will still have mortgage payments.