At the recent IAPF Annual Defined Contribution Conference some
of the findings of the IAPFs Financial Literacy and Pensions Research Report
(April 2012) were announced. This report
revealed that almost half of all adults (47%) believe the state pension will be
their main source of income in retirement. When asked how much of their current income they think they will require
in retirement below were the responses.
Level
of current income required in retirement
|
Percentage
of respondents
|
Less than 30%
|
11%
|
31-50%
|
22%
|
51-70%
|
31%
|
More than 70%
|
23%
|
Don’t know
|
12%
|
The current state pension is just shy of €12,000 per annum
or about one third of the average wage(€35,849, CSO 2011). The findings from the IAPF report highlight
the huge gap between what people expect to have in retirement and what the
State will actually provide. This gap is likely to get wider with increasing
pressure on the State to reduce costs.
This means that people will either have to make a reduction in their post retirement income
expectations or increase their private pension savings dramatically.
Independent Trustee Limited
