In a recent survey conducted by Royal London Ireland, a life insurance and pensions firm, it was found that 45% of working adults in Ireland anticipate needing the most financial support in their 60s upon retirement. The survey, involving 1000 adults, highlighted that 38% foresee their financial demands peaking in their 70s, whereas only 17% anticipate the most substantial financial needs in their 80s and 90s.
The perceptions varied with proximity to retirement, with 19% of respondents over the age of 55 predicting their 80s as the most expensive retirement decade in contrast with only 8% of the 35 to 44 age group.
Mark Reilly, the pension proposition lead at Royal London Ireland, pointed out that while financial needs for retirement can be unpredictable, a thoughtful estimate can be made by considering one’s current financial standing and potential expenses associated with advanced age.
Next year’s initiation of the mandatory employment pension plan will enrol up to 800,000 private-sector workers aged 23 to 60 earning over €20,000, who are yet to join a private pension plan, into an occupational pension scheme.
The survey also shed light on potential retirement costs. It discussed weekly nursing home fees ranging from about €1,000 to nearly €3,000, and noted that almost one-third (27%) of homeowner respondents anticipate still paying their mortgage into their post-65 retirement years, with 8% of them expecting to continue payments into their 70s. The costs of health insurance premiums, which could reach up to €390 a month or €4,700 annually, and other daily and discretionary expenses were also mentioned.
Mr Reilly pointed out that individuals commonly miscalculate how much time and money they will require during their retirement. He highlighted that examining this inventory demystifies the idea that retirement ceases expenses, emphasising that life and its associated costs continues even after retirement.