There are approximately one million workers in the private sector on track to experience pensioner poverty in retirement, according to pensions provider Mercer Ireland CEO, John Mercer.
While CSO figures reveal low numbers of private sector workers paying into a private pension to secure their retirement, the rising cost of living means that even existing savers might not be saving enough to live on in their twilight years.
In fact, the State aged pension is likely to blow out to €13 billion by 2050 if the retirement age is not increased to 68 in the near future.
All this is creating a very real scenario around pension poverty where retirees will experience a bleak existence with little funds to cover their desired standard of living.
After a lifetime of hard work it isn’t unreasonable to want to enjoy a comfortable retirement, yet if you don’t plan now, you may not have the funds to do the things you want.
Without adequate pension savings, you may even find basic costs such as heating and groceries difficult to cover, let alone eating out or the occasional holiday.
Pension planning is not something you should put off until you earn more money, pay off the mortgage or have put the kids through college.
The truth is the earlier you start, the less you’ll contribute to a pension, and the more it is likely to grow over time.
The later you leave it start a pension, the more you will need to contribute because it will have less time to mature.
Regardless of when you start, you should speak to a financial advisor to understand how much you need to be putting away to cover your needs in retirement.
Your financial advisor will also conduct an annual review of your investments to ensure they align with your retirement goals.
If you haven’t started saving for a pension, all is not lost; you can book an obligation free discovery call with a qualified member of our team who can discuss what retirement looks like to you, and provide advice about how you can bring your vision to reality.
Avoid pension poverty in retirement by taking steps now.
Call us on 091 670 123 today to book your free discovery call and get your retirement plans on track.