Just two in five business owners here say they are prepared for the introduction of the Government's planned auto-enrollment pension scheme.
According to a survey of 450 owners of small and medium sized enterprises (SMEs) carried out by research firm Amárach on behalf of Rockwell Financial and The Currency website, while over 80% said they were aware of the new legislation, just half of that number said they had taken preparatory steps for its introduction.
Among smaller firms, there was an even lower incidence of preparedness.
It is estimated that around 750,000 workers here have no private pension provision and they intend to rely mainly on the state pension scheme for their retirement income.
For many years, the Government has been working on the introduction of a scheme whereby an individual would be automatically enrolled in an occupational pension scheme provided for by their employer with contributions from the employee, the employer and the state.
Although the scheme was intended to be up and running by early next year, that target is now regarded as ambitious.
On their own retirement plans, just over 40% of business owners said they were planning to fund their retirement by selling their business.
14% said they intended to opt for a management buyout while 13% said they would pass the business on to a family member.
Just over half of business owners surveyed said they didn't have any form of protection in place in the event of illness or death.
Inflation challenge
On other matters, the survey highlights that inflation is the biggest challenge currently facing businesses here followed by recruitment and retention of skilled individuals.
The vast majority of SME owners surveyed - 90% - said they optimistic about the future prospects of their own businesses and the Irish economy as a whole. There was less optimism when it came to the global economic picture with just 54% expressing confidence in the outlook.
"The survey might provide pointers for the Government in the upcoming Budget. They could further help the sector with the establishment of packages or supports and there could be a focus on helping SMEs attract the best talent available with the potential to retain that expertise," Robert Whelan of Rockwell Financial said.
"The sector might also benefit from greater relief in the area of CGT (Capital Gains Tax) reform to encourage business owners to sell on their businesses," he added.
