Fewer people expecting to use State pension alone to fund retirement, new figures shows
Had Workers Pension Pension Of 60 And 20 Form The Aged Between Outside Of Some 67% Coverage State
The number of people without a personal or occupational pension who expect to use the State pension to fund their retirement has fallen to 52% as awareness of the new auto-enrolment scheme remains low, new data from the Central Statistics Office (CSO) shows.
The data shows between July and August, 67% of workers aged between 20 and 60 had some form of pension coverage outside the State pension. The highest rate was seen in the 45 to 54 age group at 80% while the lowest rate among those aged 20 to 24 at just 27%.
Over two-thirds of workers in the State have some form of supplementary pension coverhttps://t.co/YXqsqO25Vy#CSOIreland #Ireland #LabourForceSurvey #LabourForce #Households #Families #IrishFamilies #IrishHouseholds #LabourMarket #LiveRegister #Jobs #Employment #Unemployment pic.twitter.com/K8gjOUAWAC
— Central Statistics Office Ireland (@CSOIreland) December 19, 2024
However, of those with no pension coverage, 52% said they would be reliant on the State pension as their main source of income — a drop of 7% compared to the same period last year. One-quarter had not yet decided how they would fund their retirement.
For workers with no occupational pension coverage, 53% said their employer did not offer a pension scheme, which is up 3% from the same period in 2023. Of those with no supplementary pension cover, 43% said they had yet to get around to organising one or would do so at a future date, while 30% cited affordability as the primary issue.
In addition, 5% of those surveyed said other sources offered a better return on investment, while the availability of a spouse’s pension was cited by 2% of respondents as the main reason for not having pension cover.
The CSO also found just 29% of employees aged between 23 and 60 who are eligible for the Government’s pension auto-enrolment scheme were aware of it. The scheme is due to come into effect in September next year.
Some 72% of these employees would be willing to remain in the scheme.
Director of financial services for insurance broker Gallagher Jonathan Roche-Kelly said the lack of awareness of the auto-enrolment scheme was “worrying” adding that it is “critical that measures are taken now to bridge the knowledge gap”.
“People will be reluctant to buy into something they do not understand, especially if they feel it is effectively taking money from their pockets. Auto-enrolment has real potential to address the country’s pension coverage gap by automatically enrolling workers without existing pension plans,” he said.
Mr Roche-Kelly also pointed out the maximum State pension is currently €277.30 a week for those aged 66 to 79 — or €287.30 a week for those aged 80 or older.
The CSO’s pension coverage data also shows 69% of those with a pension have just an occupational pension, while 21% have both a personal and an occupation pension.
Workers categorised as “professionals” had the highest pension coverage rate at 84%, whereas just 43% of workers in the “skilled trades” had pension coverage.
The economic area with the lowest rate of pension coverage was in the accommodation and food services sector.