The survey, which was commissioned by life and pensions company Royal London, sought to gain insight into the barriers surrounding pensions saving in Ireland.

It found that 43pc said they cannot afford to contribute to a retirement plan.

Some 29pc said they plan to start a pension in the future.

One in five said they would rather save money into other savings or investment products. And 17pc said they expected to get the State pension and believed that would be sufficient.


Mark Reilly, Pensions Proposition Lead at Royal London, spoke of the findings,

“The survey highlights affordability as the number one barrier to pension saving for 43% of our respondents who didn’t have a pension. This shows the need for State agencies and providers to address the affordability issue through education and greater engagement. It’s hugely important that rather than simply see a pension contribution as just another outgoing that must be met each month, people realise that this money is to support their income in retirement.

For a couple aged 64 and 60, who are both relatively healthy with no illness or conditions, Royal London says they could expect to pay about €907.35 a month. That assumes neither smoke and that their alcohol consumption is within normal guideline levels, with no history of alcohol abuse.

Age, lifestyle or illness can increase those figures dramatically. For instance, a couple aged 72 and 70, where the older person smokes about 20 cigarettes a day and is in remission for testicular cancer for the past five years, would expect to pay about €1,855.67 a month, according to Royal London.

It is definitely beneficial to be familiar with your insurance policies so you can be sure that they are still meeting your needs, according to Barry McCutcheon, protection proposition lead at Royal London.

He said everyone’s situation is different, but a simple way of estimating the level of life cover you need can be to look at your family’s expenses and think about how these could be met without your regular income. Whatever financial commitments your family would find difficult to meet is an indication of how much cover you might need.

Eoin Hassett, Senior manager at Independent Trustee Company –

“While you are in a fortunate position to be faced with this problem, you are right to be concerned. Pensions are a very tax efficient financial vehicle in light of the tax relief provided on contributions and fund growth but there are several limitations to the state’s support, one of which is the standard fund threshold. This is the maximum that individuals are allowed to amass in their pension fund without having to pay extra tax when they access their benefits. The current limit is €2 million; any amount over that is subject to tax at 40 per cent.”

More than 4 in 10 adults expect State Pension to fund retirement according to a survey by protection specialist, Royal London.

The survey of 1,000 adults nationwide, commissioned by Royal London and carried out by iReach, also revealed that 74% of people underestimated how much of a pension fund would be needed to provide a modest pension income of €200 per week, with 60% of those between 18 – 24 significantly underestimating this cost.–574860.html

Royal London asked people to estimate how much of a pension pot they would require to secure a weekly pension of just €200 – 80 per cent of the current contributory State pension.

More than four in 10 respondents said a private pension pot of €100,000 would deliver that income in retirement, with 15 per cent saying they would need just half of that – €50,000.

“In reality, you would need a fund in the region of €300,000 based on current annuity rates,” said Mark Reilly, pensions proposition lead at Royal London. “The survey very clearly reveals that three-quarters of people underestimate how much money they’ll need to fund a decent pension in retirement.”

According to the CEO of the Irish Association of Pension Funds, Jerry Moriarty, it will depend on your own circumstances, but the general rule of thumb for savings is to first establish a rainy-day cash fund equal to about six months net income, in case you lose your job or jobs.

After that, your attention should turn to long-term pension savings.

According to Jerry Moriarty, chief executive of the Irish Association of Pension Funds (IAPF) “the biggest issue [emerging from this crisis] will be the employer’s ability to contribute to a company scheme or to continue the scheme. That is likely to be a bigger issue for DB schemes than DC schemes. There may be employers looking to suspend employer contributions to company pension schemes as a result of the Covid-19 crisis.”

According to CEO of the Irish Association of Pension Funds Jerry Moriarty – whatever decisions you make now, the money you have paid in, the money your employer has paid, plus any growth, is yours. Additionally, your rights to that fund are secured by law regardless of how long you are not working and regardless of whether you go back working with that employer or move somewhere else.