The Pensions Board this week urged an annual review of retirement plans, and not just by the self-employed.
Speaking as the Board began its autumn pension adequacy initiative as part of the National Pensions Action Campaign, Maura Howe, Project Manager, emphasised that people were now living longer and so the issue of pension adequacy was even more important. “It is a fact that we’re all living longer. For someone retiring tomorrow aged 65 years the average life expectancy is between 20 – 23 years, which means they could be looking at funding half their working life in retirement”, she pointed out.
Ms. Howe continued: “In a recent REDC consumer market research survey, 79% of respondents said the state pension of €223 per week would not meet their needs in retirement. Where people want more than this they’re going to have to save for retirement.”
The Pensions Board has developed a series of calculators to allow members of the public estimate how much, given their gender, age and current salary, they should be contributing to meet their expectations in retirement. The calculators are available at www.pensionsboard.ie and are an ideal way to check the adequacy of one’s pension, or to start a pension in the first place.
“Pensions are a long term investment and as retirement is now likely to be a significant part of our lives starting a pension is simply the first step. It is extremely important to review your pension annually and to ask questions of the experts as to the details of your pension and its performance. We’re encouraging people to better engage with their pension investment, to ensure that they are contributing enough towards their financial future”, concluded Ms Howe.
The National Pensions Action Campaign is designed to increase pension awareness and encourage a better understanding of pensions, as well as assisting in the increase of the numbers addressing the adequacy of their pension provision.
The Pensions Board is the statutory body set up to regulate occupational pension schemes and PRSAs and to advise the Minister for Social and Family Affairs, and through him, the Government, on overall pension policy development.