2 in 5 (43%) of Irish adults feel unprepared for retirement, according to Standard Life's Retirement Pulse
The latest Retirement Pulse survey, released by Standard Life, highlights that almost half of Irish adults feel financially unprepared for retirement. The research, which runs quarterly, offers a comprehensive look at the current state of retirement planning and experience across Ireland. The results also shed light on growing concerns among Irish adults about their financial preparedness for retirement, highlighting the urgent need for more open conversations and enhanced pension literacy and retirement planning education.
- 60% of those in the workforce and without a pension have little-to-no awareness of the Auto-Enrolment scheme.
- Retirees in Munster report highest levels of happiness this quarter (90%) while happiness levels are lowest in Leinster (72%)
Retirement Readiness and Attitudes:
 |
Unprepared: 2 in 5 (43%) of survey respondents expressed that they don’t feel financially ready to retire and are concerned they won’t be able to retire (40%). Under half (41%) say they don’t know how much they will need to live comfortably in retirement. Financial unpreparedness is especially true with female respondents, 48% compared to 38% in their male counterparts. Just under 3 in 10 (31%) remain unsure about how much they will need to save comfortably in retirement. |
 |
Social preparedness and purpose: 41% of non-retired adults feel socially prepared, and just under half (48%) feel confident they’ll keep purposefully engaged in retirement. |
 |
Sentiment towards retirement: Remains mixed, with 44% of non-retired adults looking forward to retirement, and 2 in 5 (45%) feeling anxious or scared. Almost half (47%) defer thinking about retirement until it happens. |
 |
3 in 5 lack qualified financial advice: 57% of adults have never sought professional financial advice. More than 2 in 3 women in Leinster and Cork having never consulted a financial adviser. Those who regularly consult an adviser are 19% more likely to have a plan and feel prepared for retirement. |
Auto-Enrolment scheme:
- Awareness: 3 in 5 (60%) of those in the workforce and without a pension have little-to-no awareness of the scheme. Half (50%) of Dublin workers are aware of auto-enrolment, compared to only 37% in Munster.
- Engagement: Fewer workers than last year plan to stay enrolled after the mandatory period (70%), a decline of 8.5% from 2023. Men are more likely to say they’ll opt-out.
- Employer contributions: 81% of workers consider employer contributions to a pension essential or very important when considering a new job, an increase of 4% since March 2023.
Commenting on the findings, Sinead McEvoy, Head of Retirement Solutions at Standard Life said, “Auto-enrolment is a long-anticipated, significant step forward in the Irish retirement landscape, set to pivot almost a third of the workforce with no current pension provision onto a better path to retirement. Introducing an entirely new system to a population, however, needs a consistent, effective communication plan. With 3 in 5 of the target audience still in the dark, this needs to be addressed. The decline in those planning to stay enrolled could be driven by several reasons. The existing pension system might be a more suitable option for some of those higher tax-rate workers. An adviser can help people navigate which approach is adequate for their retirement needs.”
Attitudes of retirees in retirement:
- Contentment in Retirement: 4 in 5 retirees (81%) report happiness in retirement, unchanged from the previous Retirement Pulse in April 2024. Contentment is highest among Munster retirees (90%) and lowest in Leinster (72%).
- Use of Time: Retirees spend more time with family (57%), engage in gardening (56%), travel (51%), dedicate time to hobbies (40%), volunteer (31%), care for family members (26%), take up new hobbies (22%), and pursue different careers or business interests.
Commenting on the survey results, Alan McCarthy, Head of Distribution at Standard Life, said: "The findings highlight a significant need for advice in the retirement journey for people across Ireland. While it’s encouraging to see people are engaging more with their pensions, it’s concerning to see they are anxious about their financial future. At Standard Life, we’re firm believers in the value of advice. Our research shows that those that seek advice and plan do better than those who don’t. People’s readiness for retirement significantly increases when they feel financially prepared, and a good adviser will help them put that plan in place. Additionally, it’s important to plan for your social needs and to consider what will provide purpose in this new phase of life. These are often overlooked as soft elements that will take care of themselves, but our findings point to them being significant in the planning journey and strong indicators for a person’s likelihood to experience a good or bad retirement”.
Standard Life works with financial advisers to help people feel confident in their choices and ready for their best retirement. The Standard Life Retirement Pulse is a nationally representative quarterly survey of 1,665 people, conducted by Research Plus Ltd on behalf of Standard Life.