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Contact: Aisling Kennedy
Tel: +353 1 603 9700

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Ireland
Dublin, 3 June 2010

Only one in four Irish people has made significant preparations for retirement and more than 20% of those aged 55 plus admit they have not made any preparations for their retirement, according to research published by Mercer today. The research was commissioned by Mercer from Millward Brown Lansdowne to assess attitudes to retirement provision and involved over 330 face-to-face interviews with people aged between 35 and 65 in paid employment.

Commenting on the findings, Aisling Kennedy, Senior Consultant with pension and investment experts , Mercer, said: “Given the lack of preparation by the majority, even of people close to retirement age, many of the expectations that they have for retirement may not be realised. People need to plan further ahead for their retirement, and while much has already been done,  government and employers need to do more to raise awareness of the need for retirement provision.”

The current economic downturn has also had an impact on people’s retirement planning, with 25% of those interviewed indicating that the current recession will result in them having to retire later than planned. Most of these people believe that they will have to delay their retirement by four to six years.

80% of those interviewed expect to retire by age 65, with only 20% of those interviewed expecting to retire later than age 65. The research also reveals that younger people want to retire at an earlier age than those who are getting closer to retirement. Respondents aged between 35 and 44 believe that the ideal age for retirement is 57, while those aged 55 to 64 believe it is age 63.

There is a gap of four years between the age at which people expect to be able to afford to retire (64, on average) and the age at which they would like to retire (60, on average).

 “Although people generally recognise that they will not be able to afford to retire at the age they would like to, they are probably still underestimating the age at which retirement will actually be affordable, especially considering that after 2028 the  current proposals allow for increasing the qualification age for State Pensions from 65 to 66 in 2014, 67 in 2021 and 68 in 2028.

On the other hand, the survey reveals that many people would like to work on after retirement age. 44% of respondents want to continue to work on a part-time or flexible basis after they retire. A third would also like to work on a part-time or flexible basis during the years approaching retirement age.

“Part-time work is a potential way to boost income for those who have passed retirement age but remain in good health and phasing retirement in this way has many potential benefits. However there will be significant challenges for employers and the State pension system in creating a fully flexible retirement system,” added Ms Kennedy.

The survey also found that many people do not understand how their pension scheme works, and would like more personalised investment advice. “Although most employers and trustees make a lot of effort to educate members about their pension scheme, our research shows that there is a lot more to do”, Ms. Kennedy said.

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Contact: Aisling Kennedy
Tel: +353 1 603 9700