More than half of workers are not planning to retire at 66

LESS than half of Ireland’s adults have a pension and just over half plan to continue working after they reach the retirement age of 66, a study has shown.

Standard Life said its survey of 1,000 nationally representative people found that just 49% of the public currently have a pension, which is down from 52% at the end of 2020.

It was found that almost three quarters (74%) of those who have a pension feel confident about its performance, and that most people (52%) will continue working once they reach retirement, even if they’re financially comfortable.

The research has revealed the average monthly contribution into an Irish pension rests at €145, with men (€170.19) contributing more on average than women (€111.26). A gender gap can also be seen around pension

‘It’s about a change of pace’

awareness, with women 2.5 times less likely to know the status of their pension when compared to men.

The survey by the pensions and investment company shows that only 49% of the public take full advantage of the tax relief available on pension contributions, with 15% reporting that they are not currently making contributions to their pension.

The research also revealed that the way people in this country view retirement is changing, with more than a quarter (28%) of those aged 65 and over saying that retirement is an outdated concept.

And more than one in ten (12%) of the general public said that they did not plan on retiring at all.

Alan McCarthy, head of distribution at Standard Life, said that the survey ‘shows us that we are all looking for different things from our retirebut ment, with the traditional view of retirement no longer applying to many people’.

He continued: ‘For many, it’s about a change of pace rather than a full stop.’

Reasons to keep working given by respondents included beating boredom (41%), keeping the mind active (37%), social interaction (37%) and loving the job (29%).

These all ranked above needing the money (24%) as reasons to keep working.

The survey also found that work was a huge part of the identity of almost half (48%) of people over the age of 65, this was only the case for just under a quarter of millennials (23%).

The research also showed that three in five of those aged 55-64 enjoyed the social connection that working offered and were reluctant to give that up.

Despite this, more than half (56%) of Irish people believe that they are socially prepared for retirement, with half feeling mentally prepared and just over a third (35%) reporting that they are financially prepared.

Those with a pension are also more likely to have a plan for their retirement (42%) compared to those without a pension (26%).

Pensions became a controversial issue during the last general election campaign when the Government proposed – and then withdrew – a gradual increase in the pensions age from 66 to 68, in an effort to reduce the cost to the country of the State pension.

Controversial issue