Financial struggles forcing many to reduce or quit making pension contributions
The continuing economic woes of the nation are pushing many thousands towards dropping the amount they pay into their pension contributions or cancelling their pensions altogether. This growing trend, should it carry on, has serious implications for future generations of retirees as they will face the prospect of relying solely on the old age pension for financial support. At €230 a week, the State contributory pension is not enough for those wishing to sustain the lifestyle they had when they worked.
And with calls for these payments to be reduced in the upcoming Budget, the need for those to invest into a pension plan to bridge the drop in income levels when they retire becomes ever more evident. However, this has not stopped hundreds of thousands of people to take drastic action due to the recession. Out of the almost 1 million schemes currently in operation, a fifth have either seen contributions severely cut down or, in some cases, having nothing put into a scheme at all.
An ever growing dole queue and an increased cost of living arising from hikes in taxes and other costs have forced the hand of many. These key findings were derived from research recently carried out and shows the start of a future pensions crisis. Such are the immediate money pressures faced by people, 10% of scheme members are putting a hiatus on planning for retirement. To put that into simple terms, 100,000 individuals nationally have stopped investing into pensions.
Considering the impending introduction of the new property tax in the middle of next year, this figure could rise even more. This puts those who will be reliant on financial support in old age in a very difficult situation. With people not being able to put aside money into private schemes, more funding will be required to sustain the demand for the state pension which already running at a deficit of several billion Euros.
While times are tough, making provision for your pension needs to be a priority. If you need some advice on how to get the most from your contributions, talk to our pensions experts who can review your current portfolio and recommend more cost-effective products that have your retirement goals at the heart of its performance.
It’s simple to get your financial future secure: call us on 1890 746 759 or e-mail firstname.lastname@example.org to get some advice.