According to Media reports this week, there is a Government proposal to extend the current pension age to 70. Whilst the Government have rejected this proposal, at least for now, we have to consider the real possibility of it happening in the years to come.
As a nation, we are living longer healthier lives. With that comes pressure on the financial ability of any country to sustain pension payments pf any level. So in the event that the pension age is pushed out to 70 how will you cope?
I referred in a recent blog to a survey carried out by The Irish Association of Pension Funds (IAPF) 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.
None of this is surprising.
However if the pension age is to change to 70, we all have to be aware at some level, that should we wish or need to retire earlier for whatever reason, that we have to have our own private pension savings. It is not a luxury to have a private pension arrangement – it is a necessity.
Pensions can be complicated. The 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 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. A good Financial Advisor will be able to set up a pension plan which will avoid the worry of how difficult retirement will be without 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.