Irish Times: Workers have little idea of the cost of retirement income


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.”