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.

According to Jerry Moriarty, chief executive of the Irish Association of Pension Funds, “If you’re not retiring for 10 years or more, it doesn’t much matter what the stock market is doing today, so avoid knee-jerk reactions, or you could move out of a fund when it’s low in value, and miss the upturn. The best advice I’ve seen is to think of your pension like your face; don’t touch it.


CEO of the Irish Association of Pension Funds, Jerry Moriarty says that most funds have some exposure to stocks, bonds and other investment assets, and are spread across a range of assets. So if you hear that one of these has been hit – say the stock market has fallen 20% – that doesn’t mean your pension has fallen by the same amount as only a proportion of your money may be in stocks.

This is not definitely business as usual, Jerry Moriarty of the Irish Association of Pension Funds told the webinar. He also agreed that the pensions roadmap for a 2022 auto-enrolment of all workers was looking optimistic at this point.

“You are talking 2033 or 2034 before it’s fully implemented,” he said, pointing out that it would require ten years of contributions to lead into the new system.

Eunice Dreelan, chair of the Irish Association of Pension Funds (IAPF), has reiterated previous calls for Ireland’s government to appoint a dedicated pensions minister, after an exit poll at the recent general election showed that pensions was the third most important issue for voters.


Addressing attendees at the IAPF annual dinner in Dublin last week, Dreelan said: “It is time that we had a minister whose primary responsibility is to ensure a simple, fair and equitable income system that will safeguard our older population for generations to come.”

“It’s important to get all of the information on your private pension or pensions together early – as leaving this until the last minute could delay things,” said Jerry Moriarty, Chief Executive of the Irish Association of Pension Funds.