New research from Spry has highlighted the financial security concerns that many people face as they plan for later life.
More than six in 10 Irish adults fear their pension will not be sufficient to maintain their current lifestyle once they retire, while only half believe they will be in a financial position to live comfortably after they stop working.
Spry commissioned the research in partnership with Opinions as part of a new series called Later Life Insights. A total of 1,075 adults of all ages were asked whether questions relating to financial security in later life.
Only 21% believe their pension will be enough to sustain their current lifestyle, as opposed to 61% who do not. And while 52% of respondents are confident they will be able to live comfortably for 20-30 years beyond retirement age, just 14% are ‘very confident’.
Currently almost a third of Irish workers do not have pension cover outside the state pension1, with the Government’s auto-enrolment pension scheme is due to launch in 2025 to try and defuse the pensions timebomb Ireland is facing.
Financial Security
When it comes to financial security in later life, those aged under 35 have the greatest confidence, with 59% either somewhat or very confident they will be able to live comfortably for 20-30 years beyond retirement age. This figure dropped to 46% for those aged 35-54 and was 53% for those aged 55+. Women (46%) are less likely than men (58%) to believe they are on course for a comfortable retirement.
Dublin (56%) has the highest number of people anticipating a comfortable later life, compared to the rest of Leinster (53%), Munster (51%), and Connacht/Ulster (47%). Those in rural locations (40%) are less likely to expect a comfortable retirement than people living in cities (63%), suburbs (56%), and towns (50%).
Managing finances
The research also highlghts concerns over managing finances in later life. Eight in 10 of those questioned agree that accessing personal finance products such as loans and mortgages is a challenge for ‘old’ people, with 62% agreeing that financial institutions are failing to adequately serve older people.
Spry Finance is the sole provider of lifetime loans in the Irish market. The company currently offers four different types of equity release product and has written more than €150m in loans to more than 2,000 homeowners aged over 60 since launching in 2021.
Discrimination
Spry Finance CEO John Moriarty said the research provide insight into the financial needs of Ireland’s growing older population. He said: “This research highlights concerns that we all face in an era of longer lives and longer retirements – including pension planning and financial age discrimination.
“It’s concerning that so many people are expecting a drop in their living standards when they retire, and it is important that we respond to the needs of our growing older population and ensure that they have access to the financial products and services they need to enjoy a comfortable later life.”
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