Two-thirds of Irish adults would be willing to pay automatic contributions into a compulsory pension scheme, according to the Competition and Consumer Protection Commission (CCPC).

The CPCC said this is positive news as Ireland is set to introduce pensions auto-enrolment in 2024. The policy will see employees automatically enrolled in a workplace pension scheme, which will be co-funded by the employee, employer and the state.

The research findings show that currently, a high percentage of consumers do not have any pension plan in place. When asked their reasons for not having a pension in place, 32 per cent stated that they have yet to get around to it, 20 per cent feel they are too young and a further 20 per cent don’t feel they can afford it.

Almost a quarter (23 per cent) of those in the 55-64 years age group – those who may expect to retire in the next decade – reported that they don’t currently have a pension in place. Seventy-seven per cent of this age cohort expect to qualify for the state contributory pension as one way of funding their retirement.

Of the 735 adults who took part in the research, two-thirds (66 per cent) stated they would be using the state contributory pension to help fund their retirement. The research also shows that 32 per cent of those questioned were unaware of the amount of the state contributory pension payment (currently €253 per week).

Respondents intend to supplement their pension plans with a variety of other forms of retirement funding, including, selling a property (24 per cent), rental income (23 per cent), equity release (15 per cent) and selling a business (14 per cent). One-third of those aged 25-34 expect to use funds from the sale of a property or income from rental property as a source of funding in retirement.

Commenting, CCPC member, Kevin O’Brien, said: “This research suggests a lack of provision for adequate retirement income among a considerable cohort of Irish adults. It raises concerns therefore around the long-term financial well-being of consumers, with 38 per cent having no pension in place.

“Of those surveyed, many cite the time to set up a pension or being too young as barriers to making pension provisions. Pension planning is key to maintaining financial well-being in retirement and it is evident from this new research that many Irish adults do not have the necessary provisions in place to provide for a secure retirement, despite the significant tax reliefs available on pension contributions.”

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