The high cost of living in Ireland is taking a major toll on pension savings, according to 60% of financial advisors surveyed.
The survey of over 130 advisors was undertaken by pension trustees, Independent Trustee Company.
It examined why financial advisors believe people are not saving adequately for their pension.
While the survey shows that lack of knowledge or awareness of pensions is the top reason Irish people are falling behind on their retirement savings, with 61% of advisors citing this as a key factor, Ireland’s high living costs come a close second, with 60% of financial experts saying these costs are to blame.
The Top 5 reasons people are not saving enough into their pensions are:
- Lack of knowledge/awareness of pensions
- High day-to-day living costs
- Unaffordable housing
- Lack of interest in pension savings
- Poor budgeting & money management skills
Glenn Gaughran, head of business development with the ITC said: “Ireland is the second most expensive country in the EU, with prices for basic goods and services a staggering 42% above the EU average, according to a recent Eurostat report.
“Inflationary pressures are still very much a reality in Ireland and this has far-reaching consequences for Irish people, not just for affording the immediate day-to-day – but also for saving and planning for future retirement years.”
He said, unless more is done by the Government to tackle Ireland’s high living costs so that people can save adequately for their retirement, “many simply won’t have a comfortable or even basic standard of living when they retire”.
