Tuesday, July 29 15:24:27
Savers in Ireland are less confident about the level of their retirement savings than both the UK and the United States, new statistics published by State Street Global Advisors has revealed.
In a survey of more than 2,000 plan participants, SSgA said the lack of confidence "maybe a fallout from ongoing austerity measures imposed following the financial credit crisis and, to a lesser degree, a retirement model that may change in the future".
The report said "the Irish government discussed introducing a comprehensive occupational pension scheme to achieve universal coverage, but this may be a few years away".
According to the firm's survey that questioned 2,000 scheme members, just 31pc of US participants, 26pc of UK participants and 17pc of Ireland participants fell confident that they will have enough saved through their employer sponsored DC scheme to afford the lifestyle they want in retirement.
SSgA said that DC members saw themselves as savers rather than investors, and that employers must appeal to the needs of these savers to boost retirement readiness.
Nigel Aston, SSgA managing director and head of UK DC, said: "The latest DC survey highlights yet again that DC members principally view themselves as savers, not investors. Understanding this mindset is critical for providing the right kind of support to encourage increased contributions in workplace DC plans.
"We're seeing consistently high levels of discomfort around market volatility, so it is more important than ever to ensure that pension plans offer investments that address this concern. Default strategies that balance risk and return can help increase the effectiveness of long-term saving efforts."
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