Cost crisis causes many to delay retirement

THE cost of living crisis is forcing people to delay retirement.

Survey shows more than two in five people without a pension in Ireland have either postponed the start of or planned retirement due to the cost of living crisis.

It was conducted by Behavior & Attitudes (B&A) on behalf of Pensions Awareness Week 2022, which runs throughout the week.

And another 4 percent have canceled their pensions to cope with rising energy and other costs.

The survey found that 43 per cent of people in Ireland do not own any pension product

Nearly two-thirds of this cohort say they can’t afford to save for retirement and pay their monthly bills.

This number rises to 72 percent among 35 to 49 year olds.

Almost a third of the pensionless state that they have delayed the start of their pension due to the rising cost of living.

And another 11 percent have postponed retirement for the same reason.

However, most of those who already have a pension said the cost-of-living crisis has not impacted retirement savings.

But about one in five have either stopped making payments, postponed planned retirement, reduced their pension contributions, or redeemed a retirement product because of the cost of living.

The survey also shows that just under two in five already know they won’t have enough money for retirement. The same number believe they have to work longer hours than they intended because of inadequate pensions.

Women are less likely to have an annuity than men, with only 48 percent of women saying they have some form of annuity product, compared to 65 percent of men.

There is a regional disparity among pension savers, with 63 per cent of people in Dublin owning some form of pension product, a figure that drops to 54 per cent of people living outside the capital.

Less than one in five of the pensionless have calculated how much money they will need in retirement.

Ralph Benson, founder of Pensions Awareness Week and head of financial advice at Moneycube.ie, said B&A’s research shows there are two sides to the story of the cost-of-living crisis.

“What is becoming clear is the long-term impact on people’s financial security.

“On the one hand there are those who have a surplus every month. Despite the rising cost of energy and other basics, they can probably survive with only minor improvements in their finances.

“On the other hand, we have people for whom margins are much tighter and are therefore forced to make decisions now that will affect when they can retire and the quality of life they will then enjoy. “

Mr Benson said the research also shows most people haven’t checked their pension’s performance, and even fewer know how much they’ll need when they retire. “Pensions Awareness Week gives people an opportunity to join conversations about building your pension plans and take a look at your financial health,” he said.

https://www.independent.ie/business/personal-finance/pensions/costs-crisis-prompting-large-numbers-to-delay-retiring-42000076.html Cost crisis causes many to delay retirement

Fry Electronics Team

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