Irish Times
25th May 2022
Research also finds two-thirds don’t believe they’ve left starting a pension too late
A survey on financial planning needs has found that nine out of 10 people are worried they will not have enough money in their pension fund when they retire.
However, the survey also indicated that two-thirds do not believe that they left it too late to start their pension.
Financial planning is important to the majority, with more than three-quarters saying they have considered where they want to be financially in ten years’ time. However, most people – nine out of ten – said that they are reassessing their buying behaviour as a result of soaring inflation. Of most concern to people are rising food costs (22 per cent), followed by energy costs (21 per cent) and transport costs (20 per cent). Other worries include housing and health insurance.
The survey of 400 people by Cork-based financial services firm, Provest found that just over half of respondents do not have a savings fund set up for their children. When asked if they thought they had saved enough for unexpected items such as a broken freezer, more than half said they believed they have.
A third of people surveyed said that if they were made redundant they would have enough savings to cover them for three months. However just under a third said that they would only have enough saved to last them for one month in that situation. Big unexpected financial expenses such as a broken boiler or major car expenses are a worry for most people, with three-quarters of respondents saying this is a worry for them.
Just over half said that they do believe they are taking advantage of tax reliefs when it comes to their pension but more than two-thirds said they find tax reliefs confusing. Half of people also said they would not feel comfortable having a savings account with their partner.
Managing director at Provest, Mark O’Sullivan said it is never too early to start thinking about your pension.
“The results from the survey are interesting in that most people do believe they started their pension at the right time but people are still worried that they are not putting enough money away each month for retirement. Rising inflation costs are also a huge concern for people and this is why financial planning for the future is so important.”
Provest recently announced it is planning to grow its business over the next two years as it expands in Munster. The financial services firm based in Douglas, Cork city offers personalised financial advice to private and corporate clients on a range of items from pensions, investments, retirement planning and life cover.
Provest was founded in 2017 by Mr O’Sullivan. It has more than 500 clients. The company has funds to the value of over €200 million under management and are aiming to double this figure over the next two years.