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Only 11% of Irish people believe they are fully financially prepared for retirement

Written by Robert McHugh, on 12th Dec 2017. Posted in Financial

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New research from Bank of Ireland has found that 37% of Irish people believe that they would find it difficult to live comfortably in retirement and this number rose to 41% for the over 50s. 
  
This is according to the latest Bank of Ireland/ESRI Savings and Investments Index which measures Irish peoples’ sentiment towards savings and investments. The index increased to 103 points in November from 100 in October. The monthly Savings and Investment Index is composed of two indexes, the Savings Index and the Investment Index, each comprising two sub-indexes the Attitudes Sub-Index and the Environment Sub-Index.
  
The data shows that consumers’ attitudes toward saving continue to strengthen, demonstrated by an increase in the proportion of regular savers from 49% in October to 53% in November. At the same time, the proportion of people not saving at all declined from 33% to 30%. This most likely reflects the deepening economic recovery which is providing more people with some financial capacity to save spare cash.  
  
Attitudes towards investing also improved noticeably in November with the index increasing from 100 to 106. It is likely that the improved economic backdrop also boosted Irish peoples’ willingness to invest in November. In addition, the tax deadline for income tax relief on pension investments could have prompted a greater eagerness to invest last month. This is backed up by the finding that more people invested in pension funds in November (32%) compared to October (30%).
  
The findings from this month’s Retirement Optimism Index show that Irish people appear to have some financial ‘plan’ in place for retirement – for example, 55% of people indicated they had some degree of financial preparation in place for retirement.
 
However, despite this Irish people appear anxious about how they will far financially once they retire. Thirty seven percent of people indicated that they would find it difficult to live comfortably in retirement and this number rose to 41% for the over 50s. In fact only 11% of people felt fully prepared for retirement from a financial perspective.
  
Source: www.businessworld.ie

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