Workers are clueless on the pension

A national survey, commissioned by the Irish Association of Pension Funds (IAPF) and conducted by IReach, sought to examine retirement planning in Ireland and whether people are being realistic as to their expectations for retirement age. It concluded that people simply avoid thinking about retirement for much of their working lives.

The IAPF survey found that almost 80% of adults in Ireland between the ages of 18 and 34 don’t know the level of the State Pension.

There are approximately 65,800 people in this age category in Galway which means that an estimated 52,700 don’t know what the State pension is.

The IAPF say that the results show a clear dearth of knowledge amongst not just the younger demographic, but amongst the Irish public in general when it comes to understanding how much the State pays out to people once they hit retirement age – with just four in ten Irish people over 18 selecting the correct amount of €230.

“Burying our heads in the sand and simply committing to work forever can’t replace sensible retirement planning,” said Jerry Moriarty, CEO of the Irish Association of Pension Funds.

“While it’s relatively late in the day, those over 55 facing retirement appear to have greater awareness, with over 60% knowing how much they’ll receive from the State when they retire, but unfortunately pension statistics show that many will have left it too late.

“Overall, 29% say they will retire before age 64; 27% say they will have to keep working as long as they are able, while a further 11% say they can see themselves working past aged 70,” he added.