More than one-third of people in Munster do not have a pension

Over one third of people in Munster do not have a pension, according to recent figures.
62% of Munster people surveyed have a pension but one fifth of these have reduced or stopped contributions according to a survey on behalf of Friends First.
It also showed that 17% of people in Munster are currently unable to meet their monthly financial commitments with little lift in sight as over half of participants surveyed feel less optimistic about their personal finances for 2013, compared to 2012.
Commenting on the findings, Simon Hoffman, Business Development Director, Friends First, said, “This research suggests that we are working our way towards a pensions time bomb. Financial pressures on Munster families continue to hamper people’s ability to save and meet their monthly commitments.”
“With a new property tax on the way, householders are going to be faced with an additional financial challenge at a time when they cannot take much more. As a result more and more people will become reliant on the State pension for their retirement income. However, recent reports show that the State simply cannot take any additional strain as it already faces a €3,224 billion pension’s shortfall.”
The survey also found that Munster consumers are starting to take more control and become more educated when dealing with their retirement provision. 11% of people with a pension have changed where their pension is invested over the past year with 42% of these changing the type of product that their pension is invested in. A further 21% have switched to a new broker or financial adviser. 
“We feel that consumers must face up to the stark consequences of not funding privately for their retirement and take action to ensure they make appropriate provisions. Consumers can take greater control of their pension provision by pro-actively seeking the right information and advice from those advisers who offer specialist pension advice.
“The survey certainly shows a move towards this approach and from our own experience we are seeing investment choices trending away from the traditional equity heavy managed pension funds to more secure and lower risk options,” Mr Hoffman continued.
Sixteen percent of those surveyed from Munster said that their employer had changed their pension plan in the last twelve months. One third of these stated their employer has reduced contributions and a further 11% of which said that their employer had changed from a defined benefit scheme to a defined contribution scheme.
Almost half of participants who have a pension (47%) had a defined contribution pension. More than a quarter (27%) had a defined benefit pension while less than a quarter (24%) had a personal pension. 22% of people with a pension do not know how much they contribute from their salary annually. 
The company stressed the need for people to become more educated in respect to their pension scheme “given the recent Pension Board Annual Report conclusions that as many as 80% of defined benefit schemes are in deficit and in a number of cases, the deficit is substantial”.