Ireland’s population of over 65s will grow by 200,000 over the next ten years. The implications of this ageing population for retirement and healthcare was discussed by Irish Life today at a media briefing looking at trends in the pensions, investment and health insurance sectors.
During the briefing, it was announced that only three in 10 (28%) of those not yet retired have a financial plan to help them prepare for retirement.
Surprisingly, only half of those under 50 years of age had ever discussed financial retirement plans with their partner. As retirement age approached, this increased with 75% of those ten years or less from retirement saying they had discussed plans with their partner.
The financial issues which people expect to have to deal with in retirement include supporting both their children and their parents and paying off debt.
Many life events, such as getting married and having children now happen later than previously, including saving for retirement. In 2016, the average age at which individual Irish Life customers first purchased a pension was 44 years, almost 10 years older than the average age in 2000.
Commenting on the data, Managing Director at Irish Life Corporate Business, Tony Lawless said, "We recommend a target of one third of salary, plus the state pension, for people to enjoy a comfortable retirement. However, 90% of people currently on our Defined Contribution plans are not on track and most people will see a salary replacement of just 18% plus the state pension unless they save more, and start pensions earlier."