More than one fifth of those aged 55 and over admit they have not made any preparation for their retirement, new research shows today.
The research, from Mercer, reveals that only one in four Irish people has made 'significant preparations' for when they retire.
The economic downturn has had an impact on people's retirement plans, with 25% of those surveyed saying that the recession will result in them postponing their retirement until they are older. Most of these believe they will have to delay their retirement by four to six years.
80% of those who took part in the survey expect to retire when they reach the age of 65, with only 20% expecting to retire older than that. Today's research also shows that younger people want to retire at an earlier age than those who are getting closer to finishing their working days.
The survey notes that there is a gap of four years at which people expect to be able to afford to retire (64 on average) and the age at which they would like to retire (60 on average).
Mercer cautioned that although people generally know that they will not be able to afford to retire at the age they would like to, they are still probably underestimating the age at which retirement will actually be affordable.
The consultants says this is especially true considering that after 2008, the current proposals allow for increasing the qualification age for state pensions from 65 to 66 in 2014, 67 in 2121 and 68 in 2028.
