More than a quarter of Irish adults have made no financial preparations for retirement, with the majority expecting to depend entirely on the State pension when they stop working, new research has revealed.
A survey by the Competition and Consumer Protection Commission found that 26% of adults have no retirement plan in place, marking an increase from 21% in the previous year. The consumer watchdog described the findings as a “worrying trend” that highlights significant gaps in pension coverage across Ireland.
The research, conducted by Ipsos Market Research over the summer through 1,000 interviews with adults over 18, comes as the Government prepares to introduce auto-enrolment pensions in the new year.
Among those without pensions, affordability was cited as the primary barrier by 25% of respondents, while 19% admitted to putting retirement planning “on the long finger.” Concerningly, one-fifth of people aged 45 to 54 reported having no retirement arrangements, despite being just a decade or two from retirement.
Even those with existing pensions face challenges, with over a third uncertain about how their pensions work and more than half lacking confidence that their current arrangements will provide an adequate standard of living in retirement. Additionally, less than half of pension holders review their annual statements, down from 51% last year.
CCPC Director of Communications Grainne Griffin emphasized the urgency of the situation: “With over a quarter of adults still without any retirement plan in place, and others regretting not starting sooner, the message is clear: It’s never too early, or too late, to take action.”
The survey also revealed a dramatic shift in retirement strategies, with expectations of rental income support plummeting from 22% in 2022 to just 9% this year, indicating a move away from property-based retirement planning and increased vulnerability among those without private pensions.