Research conducted for AIB by RED C Research shows that 73 per cent of adults without a private pension say they would need to supplement the state pension to maintain their current lifestyle, while 54 per cent of adults who are saving for a private pension have no idea what income this is likely to provide.
According to the research, 55 per cent of those surveyed would like advice on how much they need to save to afford the things that are important to them in their retirement. In addition to being able to fund basic needs such as utility bills, over half the people surveyed consider items such as holidays and replacing their car important.
Tony Doyle, Head of Pensions, AIB Bank, stated: “With an ageing population, the need to plan for retirement is of growing importance. By starting a pension plan early, you can compound investment returns over a greater number of years (eg, earn interest on your interest ), so you can build up a substantial retirement fund. With the October 31 tax deadline looming for the self-employed, now is a good time for taxpayers in that bracket to look at pensions, not only with a view to making their retirement years more comfortable, but also to maximise tax reliefs.
He added: “Retirement can, and should be, a fantastic time of life. The level of independence you enjoy during retirement will depend on good health and, arguably, wealth.”
Key findings from the RED C Research conducted among 1,000 adults in September 2010 were:
Seventy-nine per cent of respondents said it is important to them “to be still able to afford” such things as gifts for children and grandchildren.
Almost three in four adults without private pensions would not be able to meet their needs on the current State pension.
The highest percentage of respondents (82 per cent ) want to be able to stay in touch with family and friends by being able to pay their telephone bills.
Fifty per cent consider cable/satellite TV and holidays abroad important items they wouldn’t want to be without.
Fifty-five per cent of those surveyed expressed the view that they would like advice on how much they need to save to afford the things that are important.