Planning for retirement

Survey highlights need for professional advice

Almost half of all people planning for their retirement do so without getting professional advice, according to a new survey.

Despite the complexities involved in choosing a suitable pension plan, some 45 per cent solely do their own research before taking one out. And of these, 39 per cent are not maximising the tax relief they are entitled to for their pensions contributions.

This is according to a survey carried out by Moneycube.ie ahead of Pensions Awareness Week 2023 (PAW23), which is underway this week.

Now in its fifth year, Pensions Awareness Week is designed to raise awareness about retirement planning and to help people take charge of their long-term savings. Backed by a host of businesses and representative bodies, PAW23 is an initiative from Moneycube.ie, experts in the pensions industry.

The three hosts for the week-long event will be broadcaster and author Ryan Tubridy, journalist Gráinne Seoige and entrepreneur Liz Dwyer. Tickets for each day’s online events are free with online registration.

The survey also found that:

- One in four – or 25% - do not have a current pension plan

- When asked if they were happy with their financial adviser, 62% said they were either not getting advice or think there is room for improvement in the advice they are getting.

- One third of people who do have financial advisors do not know what fees they are paying, with estimates ranging from zero to 30%!

The survey, which was carried out between August 15 and September 22, over a sample size of 397 individuals, also spoke to company owners and found that 19 per cent are not sure if they will be impacted by auto-enrolment, which is coming into effect next year.

Organised by Moneycube.ie, PAW23 is supported by Allen Retirement and Finance, Davy, Ibec, the Irish Association of Pension Funds, the LIA, New Ireland, the Retirement Planning Council of Ireland, Royal London Ireland, the Small Firms Association (SFA), Standard Life, and Zurich Life.

Feargal McKenna, founder of PAW and Moneycube.ie’s Head of Corporate, says: “More than ever, people in Ireland are taking matters into their own hands to plan their retirement income. But if savers are to make good decisions about their financial future, they need high-quality information at their fingertips – and access to advice at key junctures in their financial lives. That’s why Pensions Awareness Week brings together industry experts, leading businesses and financial wellbeing organisations to create a conversation around pensions each September. Our aim is to help people and businesses make informed decisions from the earliest stages of planning for retirement.

“There’s plenty for us to talk about: for example widespread confusion around pensions – from costs, to performance, to regulations. The planned introduction by government of auto-enrolment for pensions is going to put huge pressure on HR and finance functions within SMEs, yet our survey reveals that 19 per cent of companies do not know if auto-enrolment will affect them. We’d encourage anyone interested in their financial future to engage in the Pensions Awareness Week conversation, get the facts around their own situation, and seek expert advice where it counts.”