8 in 10 employees in Ireland do not feel prepared for retirement

In a survey of 1,200 employees and 500 employers across private, public, and not-for-profit organizations, three-quarters (74%) of respondents said they manage their day-to-day finances well, despite the prevalence of concerns about retirement planning.

Almost half (45%) of respondents said they do not understand retirement planning, while 35% said they do not fully understand their pension scheme.

The study also highlights a widespread misunderstanding of what retirement actually means in financial terms.

Many people continue to focus on their pension "pot" rather than the income it will generate.

On average, respondents expect their retirement income to replace just 42% of their salary, below the 50–55% typically required to maintain living standards.

Furthermore, confidence tends to decline rather than improve as people approach retirement.

Among those aged 55–64, only 10% said they are financially prepared, while confidence in managing money in retirement drops sharply.

The research also points to broader implications for employers and HR leaders, with only 31% of employers believing their workforce is financially ready to retire.

Despite pension participation being greater than ever with the introduction of auto-enrolment, many remain unsure what their contributions will mean in practical terms, how much income they can expect, when they can afford to retire and what lifestyle that income will support.

While employees would like to retire at around 60, most expect closer to 65, and many anticipate working until 70.

Half expect to work part‑time in retirement for income reasons, while 51% said they wish they had started planning earlier. More than half worry their money will not last through retirement.

On the employer side, less than a third (32%) believe employees are prepared for the lifestyle transition that retirement involves, while 77% report that financial problems are already reducing productivity, engagement and focus in the workplace.

“Ireland has made significant progress in encouraging pension participation. But this research shows clearly that participation is not the same as preparedness. The real gap now is understanding - and being able to picture not just the money, but the life you want after work," said Emer Kirk, CEO of Financial Planning Standards Board Ireland.

“Employees are saving, but many do not know what those savings will deliver as income in retirement - or how prepared they are for the lifestyle change, from routine and social connection to purpose and identity.

"Without that clarity, people delay decisions about contributions, careers and retirement timing. Financial uncertainty is no longer just a personal issue; it has become a workforce planning issue for employers.”

The research also highlights a strong appetite for help, but a gap in the provision of support.

Nearly three‑quarters of employees (72%) believe employers should support the transition to retirement, and 60% would welcome working with a professional to help plan.

While 63% of employers said they would welcome external specialist support, only 32% currently offer a structured retirement‑planning programme.

Joanne Keane, CEO of LIA, said, “With the right structures and access to high‑quality financial guidance, employers are well placed to make a real difference to how people prepare for retirement.

"Strengthening retirement planning, particularly across SMEs, can significantly improve long‑term financial confidence for employees.”

Mary O’Dea, CEO of IOB, concluded, “Knowledge is empowering. With the right support and guidance, individuals gain the clarity and confidence to plan and prepare for their future. Sometimes, a single conversation can be the first step toward long‑term financial well-being.”

* This article was originally published on BusinessPlus.ie.