The Irish Association of Pension Funds (IAPF) recently commissioned a survey to examine retirement planning in Ireland and gauge people’s opinions and expectations of their retirement.
The survey concluded that many people simply avoid thinking about retirement for much of their working lives. The study also found that almost 80pc of adults in Ireland between the age of 18 and 35 were unaware of the current state pension level. The study did show however that this particular age group felt they will have to work long term, many citing up to age 70 as a realistic expected age.
The survey also concluded that those over 55 and facing retirement, appear to have a much greater awareness of how difficult retirement maybe, as many have not prepared financially for their retirement and can now see the impact this will have on the quality of their retirement.
This is not surprising, it is human nature to feel retirement is a very long way away particularly at younger ages. However as we all know life does have a tendency to fly by!
So how can we impress the need that it is critical to have a retirement plan in place?
Unfortunately many view pensions as complicated and indeed they can be. The pensions terminology can be difficult to understand and there are many complex rules and regulations around pensions be it in terms of policy conditions, taxation, retirement options etc.
However I think we need to keep it simple; a good Financial Advisor will guide you through the process particularly at retirement age where you are accessing your pension, where good advice is crucial. However at the starting point, we really don’t need to know the complexities of pension planning. We just need to know that essentially pensions are long term savings pots.
I don’t think anyone will express regret when at retirement age there is a nice retirement pot to deal with. The complexities if indeed there are any, can be taken care of at that stage. The important thing is that you will not be facing the worry of how difficult retirement will be not having putting sufficient plans in place.
If you wish to start your long terms savings plan (otherwise called a pension!) do call us today at 053 9233640.
This is an opinion only and does not constitute advice as individual circumstances will determine all financial advise given.