Belfast Telegraph

Workers 'must save 9,100 euro more'

Irish workers need to bank an extra 9,100 euro a year to financially survive retirement, a report on the pensions timebomb said.

A study has uncovered a 20.2 billion euro black hole in the amount of money being saved for life after 65.

Insurance firm Aviva warned that only workers in the UK and Germany are in a worse financial position for their retirement plans.

Its European study found 20-year-olds in Ireland face an average gap of 1,700 euro a year in retirement savings and up to 21,100 euro for 60-year-olds.

Aviva warned that Britons are facing a deficit of 12,300 euro per person and Germans 11,600 euro.

Jim Dowdall, Aviva Ireland chief executive, said: "Closing this gap can be achieved by a combination of factors, such as increased savings, raising the retirement age or indeed adjusting our expectations for our lifestyle in retirement."

Mr Dowdall urged government and the insurance industry to come together to develop a stronger retirement savings culture.

"We need to ensure a widespread understanding of the scale of the problem, and encourage individual responsibility to tackle it," he said.

"A practical combined public sector/private sector approach to tackling the issue has become imperative."

Aviva warned that by 2051 half the Irish population will be 65 or over - three times as many as now.

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