In a recent survey conducted by Amarach Research, it was found that a
third of workers plan to rely solely on a state pension, the Irish Independent
reported today.
The state pension currently stands at just under €12,000 per annum which is about one third of
the average wage (€35,849, CSO 2011). These figures mean that many people will find it almost
impossible to keep up their current standard of living if they rely solely on the
state. In a recent report by the IAPF it was found that there was a large gap
between what people expect from the state pension and what they will receive in
reality. This gap is likely to get wider.
The survey, conducted with 1,000 adults shows that only 4 out of 10 people
plan to use a combination of the state pension and private retirement income. It
was also found that three-quarters of people do not know how much they are
paying in annual pension charges and just one in 10 shop around for pension
products (Independent.ie).
The importance of private pension provision is
unquestionable, relying solely on the state pension will not ensure long term
financial security for most.
