In a recent Bank of Ireland survey concerning the attitude of Irish adults to financial planning, one in five admitted to being poor savers, while one in three noted that while they would like to save, they can’t afford to.
The survey, which marked the launch of Bank of Ireland’s new online life and pensions portal, Life Online, also covered attitudes to personal security: 23% said they leave a spare key outside their home, 90% lock their cars when they run into a shop while one in four don’t bother to do so when paying for petrol or diesel.
When it came to pensions, 66% of respondents said that they would be relying on the state pension for retirement income. Under half (44%) felt that they didn’t understand pensions while over 60% agreed that it seems too far into the future for younger people to begin saving for their pension.
A lot of the respondents also recognised that there are barriers for young people in relation to starting pensions, with 70% saying that younger people have too much competing priorities for their money. Many respondents also recognised the need for initiatives to encourage younger people to begin planning for their retirement, including encouragement on the part of employers and education programmes in schools.
If you’re thinking about, or are in the process of, planning for your retirement, Irish Life has a few top tips, such as:
- Consider your existing debt levels – have you cleared them?
- Examine your saving strategy – are you saving enough?
- Plan for unexpected costs such as unforeseen health or dental costs, the possibility of having to move to a nursing home or supporting additional dependents
- Remember that when you reach retirement age you may be eligible for certain grants in areas like home heating, insulation and mobility.