Pension participation rises despite low confidence in retirement security

Recent research highlights a growing gap between pension participation and consumer confidence in retirement security. In Ireland, pension ownership has increased by 17 per cent following the introduction of the MyFutureFund auto-enrolment scheme. However, the Competition and Consumer Protection Commission (CCPC) reports that less than half of participants are confident their savings will provide a good standard of living, and only one in three believe their savings will keep pace with inflation.

The Irish data also reveals a gender disparity: 24 per cent of women have no retirement arrangements compared to 17 per cent of men, and women report lower levels of pension literacy and confidence.

In the United Kingdom, a survey by Which? found that employer pension contributions are often overlooked as a key employment benefit. Only 31 per cent of working adults rank employer pension contributions among their top three considerations when accepting a job, trailing behind sick pay and flexible working. Furthermore, nearly half of those in defined contribution schemes are unaware of how much their employers contribute. Experts suggest that while pensions are often neglected during job searches, generous employer contributions function as a ‘silent pay rise’ that significantly impacts long-term wealth.