A new survey has found nearly half of Irish people feel financially unprepared for the future, while 42% of young adults do not have a pension.
According to the research by LIA – the centre of excellence for the education and development of finance professionals – 43% of those surveyed also said they are struggling to “make ends meet”.
The research reveals that the lack of preparedness is more pronounced among women, with only 11% feeling “very prepared” compared to 23% of men.
43% of respondents to the LIA survey also said they were struggling to make ends meet, with no savings.
The study of 800 people aged 25 to 60 found only 42% nearing retirement reported feeling more confident in their financial position.
Nearly a third of those respondents aged 35-54 and 42% of those aged 18-34 do not have a pension, it also reveals.
Today’s survey also showed that 34% of respondents saved less than 5% of their income, with 42% of women saving less than 5% of their income compared to 24% of men, highlighting significant gender disparities in savings habits.
But it noted that 13% of respondents save over 20% of their income, which LIA said may be reflective of higher income earners who have more disposable income available for savings.
In addition to financial insecurity, the research shows that 81% of those surveyed said their financial struggles was negatively impacting their mental health.
LIA said today it was launching a new three-year strategic framework, which is dedicated to further advancing members’ knowledge and expertise, while empowering them to provide the best financial advice.
This, in turn, helps individuals feel confident about their financial future, and supports overall well-being, it said.
Joanne Keane, CEO of LIA, said that financial insecurity is not just an economic issue, it is a mental health issue.
“Our research shows that too many people are unprepared for the future, leading to unnecessary stress and anxiety. The good news is that help is available,” she said.
“Professional financial advice provides clarity and direction, helping people navigate not just retirement planning but also major life milestones – buying a home, funding education, or planning a wedding -ensuring they can make informed financial decisions with confidence,” she said.
“Our new strategy reinforces LIA’s role in equipping financial advisors with the highest level of expertise and professionalism. By continuing to develop and support highly educated financial advisors, we strengthen the availability of quality advice, helping individuals take control of their financial future and build resilience for whatever lies ahead,” she added.
