More than one in five Irish adults do not have a pension, according to new research by insurance broker Gallagher in Ireland.
The group, which carried out a survey of 1,000 adults, found almost half (48 per cent) of pension holders wish they had started their pension earlier while about one in five (19 per cent) wish they had paid more into their pension sooner.
Overall, one in five (21 per cent) Irish adults say they don’t have a pension at all, with women more likely than men not to have one (26 per cent versus 16 per cent).
The survey also found seven in ten people believe the Government should offer workers financial advice in advance of the rollout of the auto-enrolment scheme so people are aware of what’s involved.
The research found three in 10 pension holders do not recognise the importance of early contributions, while nearly one in five (18 per cent) cited a lack of understanding of pensions as the reason for their delayed savings.
Jonathan Roche-Kelly, director of financial services at Gallagher in Ireland, said: “The fundamental issue at play here is that too many people fail to grasp the long-term impact of delaying pension savings until it’s too late.
“With auto-enrolment on the horizon, we have a unique opportunity to reshape Ireland’s approach to retirement savings. It is arguably the biggest reform to the Irish pension system in decades and it will impact the 800,000 Irish workers who are not currently contributing to a pension.”
Almost one in three said auto enrolment financial advice sessions should be mandatory ahead of the rollout of the scheme, while almost 40 per cent said such advice should be offered on an optional basis.
The number of people aged 18-24 that would support the rollout of financial advice sessions ahead of auto enrolment is significantly higher than the national average (84 per cent versus 71 per cent).
One in five (20 per cent) don’t believe such advice is necessary, believing it is more a case of personal responsibility for individuals to inform themselves about auto enrolment, as long as the information is readily available.
Some 9 per cent don’t believe such advice is a good idea because it would either cost the Government too much money or would constitute unnecessary “hand-holding” for employees.
