Pensions and Retirement
A large number of workers never miss a day in work, but are unlikely to be saving enough for their retirement pension.
The average contribution to a pension is just 10% of salary, when workers need to be saving more; according to the Irish Life-commissioned research as the current system whereby most people rely solely on the state pension in retirement is “unsustainable”.
The inadequate pension saving is in contrast to the commitment to work. The survey found that more than a third of workers have never missed a day’s work which shows that employees are dedicated to their work, but not fully committed to securing their financial future. It would appear that workers need to put 15% of their earnings into their pension.
However, as people only generally start to save for their pension in their mid-30s, this is why they actually need to save at least 15% of their salary to secure a better retirement outcome.
People need to start contributing more to their pensions and at an earlier age in order to achieve a better outcome in retirement. Just 29% of people know what they need to live on in retirement.
The research also shows that achieving a work-life balance is still proving difficult for employees. A fifth also admitted they felt it was important to arrive in work before their boss and to leave after them at night.
The latest research on pensions comes as a leading academic concluded that it was inevitable that people would have to work longer, rather than retiring in their mid-60s, a conference on the sustainability of the state pension was told.
Should it be enforced or should it be a choice ?
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