Nest Egg: This is the year to kick-start your pension

The CSO Pension Coverage 2021 report has stressed once again the importance of putting some savings aside for your retirement, and not waiting for the Government’s promised auto enrolment pension.

Their plans to introduce an auto enrolment pension has been delayed yet again, this time until the end of next year, mainly due to the difficult of getting all stakeholders to agree the correct working framework.

Three quarters of workers aged 20 to 24 have no pension. While they do have time on their side and many are on low incomes and paying high rents, even a small amount of savings adds up over time.

And there is the additional benefit of a savings habit contributing enormously to a feeling of wellbeing and a sense of control over where you are going, especially when you get free tax relief from the Revenue.

Almost one-third of all employees have no pension coverage, and of the employees with no supplementary pension cover, 45 per cent said they never got around to it or would do so at a future date.

Postponing starting a pension could lead people to depend on the State pension into the future which is not a wise retirement planning strategy.

That level of income will not sustain most people’s lifestyles in retirement. You simply have to feather your own nest and take action to start a pension and contribute to it on a monthly basis.

It would not be a nice feeling to reach middle age and the come to the realisation that you do not have sufficient time left to build a pension that would deliver the level of income that you need to be comfortable in retirement. It will not be possible to wind the clock back and un-spend some of those excess savings that have now disappeared.

My advice would be to act now and seek impartial financial advice. Research carried out in 2016 here in Ireland showed that those who have used a financial advisor (71 per cent) are more than twice as likely to have a pension compared to those who have not used a financial broker or advisor. We can help you start your journey so get in touch to start your retirement plan today!