The last major recession in Ireland was back in the 80's so anyone born in 1983 will expect to retire in 2051 i.e. 68 years old based on the the current changed legislation.

Some food for thought, in 2010 there were 491,000 0ver 65's in Ireland. By 2020 this figure will increase to 736,000 a staggering 245,000 increase in the space of 10 years. This number escalates alarmingly in 2051 to 1.25M over 65's.......so the recession babies of the 80's could quite feasibly become recession retirees!

Why do I say that well the stark reality is that in 2010 there were 6 workers per every 1 retiree, FACT!
By 2051 this ratio drops to an amazing 2 workers per every 1 retiree, FACT!
(Source: Aviva Life & Pensions) 

The clear message is that this recession with all its associated austerity measures is highlighting to everyone who do not have an adequate pension a glimpse of the future that awaits them. Not a pleasant thought I think that you will agree.

Currently Ireland's Pensions savings gap per year is €20,200,000,000 which equates to 17% of GDP at 2010.
(Source: Aviva Life & Pensions) 

Remember recessions are temporary.......retirement is permanent! The question that we all need to ask ourselves is do we want to be an OAP or a Retiree?

 What can you do to ensure that you are a RETIREE and not an OAP? Well small increases can make a big difference for example for every €1 paid in today - could be worth an additional €3 in retirement income. Let's put this into context, someone who has 30 years to go to retirement, for every € they contribute could be worth an extra €3 as a monthly retirement income. A 3:1 ratio. However the ratio drops to 2:1 should they have 25 years to go to retirement and drops again to 1.5:1 if they have 20 years to go to retirement.

The reality is that even a small increase of €25 per month could mean you have an extra €75 per month when you retire, coincidentally this is the equivalent of 33% of the State Pension (Contributory).

I don't believe these nominal increases should break the bank for many of us when you consider a family of 4 ticket for the cinema is €25 (plenty of us are still going to the cinema aren't we). A typical "Early Bird" meal for two will cost in the region of €50.

So the message is clear......planning for your retirement is largely up to YOU and saving for it is YOUR responsibility!

 Check out our pensions page for more info or call Alasdair on 01 810 1912 or email info@agsfinancial.ie