Sixty-three per cent of Irish pre-retirees believe the introduction of automatic enrolment (AE) in Ireland will reduce the gender pension gap, according to research by the Retirement Planning Council of Ireland.

The survey by the Retirement Planning Council also found that 68 per cent of female respondents will be heavily reliant on the state pension when they retire, as opposed to 32 per cent of male respondents.

The Retirement Planning Council said its findings demonstrate the pension disparity between women and men at retirement. For example, 60 per cent of female respondents would consider working past the age of 65, compared to 40 per cent of male respondents.

Sixty-eight per cent of respondents think there is pension disparity between men and women, and 58 per cent of respondents think it is not recognised in society. Seventy-five per cent of respondents agree that women have historically faced financial discrimination in pensions.

Half of respondents think that providing unpaid care contributes the most to women’s inequalities in the pension system, while 35 per cent think it is due to holding low-paid or part-time jobs.

Commenting, Retirement Planning Council of Ireland CEO, Laura Farrell, said: “At present, there is a cohort of women approaching pension age who grew up in an era when their mothers did not expect a pension, therefore pensions may not have been a high priority in their retirement planning.

“It is also important to note that a woman’s pension was negatively impacted by the marriage bar, it was lifted in 1973, which was the requirement that women working in certain jobs must leave that job when they marry. Many women were forced out of the workforce on marriage or voluntarily took career breaks to care for children or other family members. Career breaks meant breaks in contributions – to both pay-related social insurance (PRSI) and occupational pension schemes.

“It is encouraging to note that 63 per cent of respondents think the introduction of auto-enrolment in Ireland will reduce the gender pension gap. It is important for individuals to have a clear plan in place for this phase of their life and to start acting towards their goals as early as possible.”

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