Most Irish people are saving again, but they are unaware of potential extra value in pensions, a new survey by Irish Life shows. While 64 per cent of people have savings, a third claim to have no savings at all. More women than men are saving – 67 per cent compared to 59 per cent and over-55s save the most. Some 43 per cent of savers put away over €100 a month.
The study found that 42 per cent of consumers who plan to start saving could afford to save €80 to €100 a month. People living in Dublin were found to be saving more overall, 18 per cent of people claim they are saving between €20 and €50 a month, with another 18 per cent saving between €51 and €100. One in three employees have a company pension when they retire.
One in four of the 1,001 people interviewed have a private pension. By saving into a private or company pension plan, savings can go further. Because of tax reliefs, if someone wants to put €100 into a pension, it will only cost them €80 if their tax rate is 20 per cent, or €60 with a 40 per cent tax rate. Many workplaces provide pension schemes for employees.
They operate a system of matching staff contributions, which can mean up to €200 into their pension fund, for a cost of €80 or €60 to the person based on a €100 contribution. Irish Life wants to highlight the value to consumers and help them understand the gains that saving into a pension offers. However, it can be a challenge to get people to save for their future.
For more information on Irish Life Empower, visit www.irishlifeEMPOWER.ie