A new survey released today by Mercer has found that only 22% of Irish respondents are confident of saving enough for retirement while 65% expect never to retire or to keep working for longer.
The study, which was conducted across 12 countries, 7 regions, with 7,000 adults 18+ and 600 senior decision makers from private and public sectors, showcases relevant data and outlines opportunites for individuals, employers and governments to close the gaps in health and financial security.
The research shows that people expect to spend 15-20 years in retirement (14-19 years in Ireland), but without better planning, many will outlive their savings. The research demonstrated that only one quarter of pre-retirees (22% in Ireland) are confident that they will save enough for retirement.
The expected retirement age no longer applies, as people are working longer either out of choice or from economic necessity. More than two-thirds of respondents (68%, globally, 65% in Ireland) expect to keep working in some capacity or never retire. As working longer requires a degree of physical fitness, health is now vital to wealth. Yet only 39% (54% in Ireland) profess to be in excellent/good enough health for the job they have today.
Furthermore, 81% of adults (86% in Ireland) feel personally responsible for their retirement income, yet many do not take requisite actions. Various factors (stress, affordability, access and confidence in investing, age, gender and stage of life) affect people’s ability to save and invest.
Currently, one-third of those surveyed both globally and in Ireland indicated that they have not made any retirement savings financial calculations – and the largest work force segment (millennials) change jobs more frequently which also has significant impact on savings. Women face a gender gap in salary inequity and career continuity; and “gig” or informal economy workers are virtually on their own.
Commenting on the research, DC and Financial Wellness Leader for Mercer in Ireland, Mairéad O’Mahony said, "Ireland is at a cross roads in terms of the future financial security of its citizens. The planned introduction of an auto-enrolment system in Ireland in the near future will form part of the solution, but everyone has a role to play including government, employers and individuals."
She added, "To be successful in closing the savings gap the government must ensure that auto-enrolment delivers a robust savings solution with strong governance to protect peoples’ interests. This must also be supported with appropriate incentives and education to empower individuals to make the right choices for their future."
Source: www.businessworld.ie
