Pension Coverage 2024
- Thread starter TheJackal
- Start date
Most people who are due to be signed up for new pension scheme unaware of it
www.independent.ie
Most people who are due to be signed up for new pension scheme unaware of it
Large numbers of people who do not have a private pension or one as part of their job are unaware of plans by the State to bring in a new mandatory retirement.
www.independent.ie
Can you link to reports/studies that show this to be the case, please?
VInterested
Registered User
- Messages
- 11
See "The average pension fund in Ireland matures at around €107,000." in thepensionstore web site :7reasons why your pension fund isn't as big as it should be.
I cannot copy the link...
and
"The average pension in Ireland is €111,000 in 2024" in the nationalpensionhelpline website.
I cannot copy the link...
and
"The average pension in Ireland is €111,000 in 2024" in the nationalpensionhelpline website.
To be honest, I wouldn't really trust either of those sites for such information. Especially the latter which misleads many people into thinking that it's some sort of official Government site. Several Askaboutmoney posters have cited it (and incorrect/misleading info) because they fell into this trap. E.g.:
25% tax free pension withdrawal at age 50
Hello All, I read with some interest here -> https://nationalpensionhelpline.ie/pension-calculators/tax-free-pension-lump-sum/ In summary you can withdraw 25% of your pension tax free when aged 50 or above. From reading the site it says you can keep working after this withdrawal. I have the...
www.askaboutmoney.com
Last edited:
Dr Strangelove
Registered User
- Messages
- 1,624
@ClubMan - I've searched in vain over the years for the answer to this question. It seems that no statistical authority or industry group compiles it which is a real shame. Anyway I tend not to trust surveys of pension savers or recipients all that much as people are often ignorant of or reticent about their financial situation.
Anyway this Revenue data from 2019 shows about 800k tax units (so some married couples) making an average of €3.7k pension contributions annually each. I completely trust the Revenue data btw. CSO show about 2m private sector employees and self employed in 2019 who could have been making contributions against the 800k tax units, which is probably 900k-1m individuals when you account for married couples. It's very hard to know how long people actually contribute for. Some do it their entire lives, many start late in life, some are patchy, and some make no contributions at all. But I'm going to assume something like a 25-year average contribution span who actually make contributions.
Pension saving of €4k per year (assume no inflation) gets you €145k after 25 years if you assume a 3% real return and €190k after 25 years if you assume a 5% real return.
So I think that estimates you see online of around €110k-€120k are on the low side and designed to hook people in and it's probably closer to
Of course median and mean will differ a lot as this distribution will have a long right tail.
Anyway I think it's plausible that the average Irish worker making pension contributions is on track for something between €150k and €200k in today's money at retirement.
Finally, to give a practical example someone who saved a nominal $2k every year since 1999 and put it in the S&P500 (net 100bps of fees) would have $163k after 25 years. These pension contributions would have been not large by any metric but would have produced a pension pot today well above what the industry claims.
Anyway this Revenue data from 2019 shows about 800k tax units (so some married couples) making an average of €3.7k pension contributions annually each. I completely trust the Revenue data btw. CSO show about 2m private sector employees and self employed in 2019 who could have been making contributions against the 800k tax units, which is probably 900k-1m individuals when you account for married couples. It's very hard to know how long people actually contribute for. Some do it their entire lives, many start late in life, some are patchy, and some make no contributions at all. But I'm going to assume something like a 25-year average contribution span who actually make contributions.
Pension saving of €4k per year (assume no inflation) gets you €145k after 25 years if you assume a 3% real return and €190k after 25 years if you assume a 5% real return.
So I think that estimates you see online of around €110k-€120k are on the low side and designed to hook people in and it's probably closer to
Of course median and mean will differ a lot as this distribution will have a long right tail.
Anyway I think it's plausible that the average Irish worker making pension contributions is on track for something between €150k and €200k in today's money at retirement.
Finally, to give a practical example someone who saved a nominal $2k every year since 1999 and put it in the S&P500 (net 100bps of fees) would have $163k after 25 years. These pension contributions would have been not large by any metric but would have produced a pension pot today well above what the industry claims.
VInterested
Registered User
- Messages
- 11
Interesting... i had no idea. Thanks!
How many pensions does the average person have?
Could be less than one if one third of people have no pension coverage at all?
Dr Strangelove
Registered User
- Messages
- 1,624
It’s a good point. Some people have multiple pensions from previous employments. The industry nor the CSO nor anyone else can match all these schemes to a single person.
My own estimate higher up the thread is that the typical DC scheme or schemes per retiree at retirement is higher than industry suggests.
The only way is up for this number due to rising pension coverage, rising wages, and rising equity prices.