Ireland is known for its vibrant culture, entrepreneurial spirit and resilient approach to life’s ups and downs. But when it comes to retirement planning, particularly private pensions, there’s a striking gap. A recent Irish Examiner piece titled “Five reasons I don’t have a pension, perfecting the Irish art of financial denial” highlights a candid viewpoint: many people simply haven’t started a pension plan, often for reasons of inertia, mindset or lack of financial literacy.
At the same time, data from Elevate Financial reveal that the scale of this gap is significant:
- About one-third of the working population aged 20-69 have no pension coverage outside the State pension.
- Over 1 in 4 people aged between 55-69 have no savings for retirement.
- Almost 60% of those aged 20-69 who don’t have pension coverage intend to rely solely on the State pension.
- Ireland is currently the only country in the OECD without a full auto-enrolment pension system, though one is planned.
With that backdrop, let’s break this into two parts: first, the reasons many Irish adults have yet to start a pension; second, the compelling reasons why now is the time to act.
Why haven’t more people started a pension?
Here are the most common barriers, drawn from both anecdote and data:
- “It’s too early / I’m still young”
In the Irish Examiner piece, the writer admits he never “felt old” and assumed retirement was far off. Irish Examiner For many younger adults, there’s a sense that “I’ll get to it later”. The danger: the longer the delay, the less time there is for compound growth.
- Lack of financial literacy or habit
The article states: “Nobody in Ireland ever sat us down and explained money to us … we learned about the Treaty of Limerick and earthworms but not tax.” This lack of early education means pensions often feel complex, boring or overwhelming, something easy to postpone.
- Procrastination (“the long finger”)
“I’ll do it after Christmas”, “I’ll look into it when the kids go back to school”, the piece highlights how delaying becomes a habit. For many, starting a pension is deferred because other immediate priorities dominate.
- Feeling it’s too late / the ship has sailed
There’s “a special shame in starting late” the article suggests. People in their 40s or 50s may assume they’ve missed the window for meaningful pension saving, even though starting late is far better than not starting at all.
- It’s simply not a sexy topic
The article puts it bluntly: “Pensions are not sexy … No one has ever whispered, ‘Tell me more about your contribution limits’.” Because retirement planning doesn’t grab attention like other financial topics, it often fails to get the airtime it deserves.
- Over-reliance on the State pension or job pension scheme
Data indicate that many assume the State pension will be sufficient, or rely on a single employer plan. But the statistics show that one-third of working adults have no coverage outside of the State pension.
Why you should start a pension, sooner rather than later
As an adviser with experience in retirement planning, I can’t emphasise enough the importance of starting a pension, and making it a priority. Here’s why:
- Time is your greatest asset
The earlier you begin, the more you benefit from compound growth, the “interest on interest” effect. Starting in your 20s or 30s dramatically improves your odds of a comfortable retirement. Even if you’re starting later, the sooner you act, the more you give yourself.
- The State pension alone won’t cut it
As Elevate’s data show: one in four people aged 55-69 have no savings for retirement, and many plan to rely solely on the State pension. But the average full-time wage in Ireland is around €48,000 per year, while the annual take-home State pension is just under €13,000. That gap means without additional income sources, your retirement lifestyle may be under pressure.
- Avoid the regret of “if only I had started earlier”
Procrastination is common, but starting even in your 40s or 50s beats doing nothing. The key is to accept the situation, set realistic goals, and begin, rather than assume it’s too late.
- Pensions are becoming more accessible
Ireland is preparing for an auto-enrolment scheme, which will make saving easier for many. If your employer adopts this, you’ll benefit from a system that encourages saving without you having to initiate it alone.
- It supports peace of mind and long-term planning
A pension gives you control, not dependence. Instead of relying solely on changing State provisions or employer benefits, you build your own financial future. Retirement isn’t simply “old age”, it’s a planned phase of life worthy of its own strategy.
How to get started, practical advice
- Step one: Get clarity on where you stand now. Do you have any pension plan (company or personal)? What is your expected retirement age and desired lifestyle?
- Step two: Speak to a qualified financial adviser (regulated in Ireland) who can help map out your contributions, investment risk, and time horizon.
- Step three: Choose a pension plan. Options might include a personal retirement savings account (PRSA), a pension through your employer, or a self-administered pension if you’re self-employed.
- Step four: Commit to regular contributions, even if modest to start. Consistency matters more than a huge lump sum.
- Step five: Review annually. Life changes (promotion, job change, family, relocation) may affect your pension strategy; staying on top of it ensures you remain on track.
Final thoughts
So why are so many people in Ireland yet to start a pension? It’s a complex mix of mindset, life stage, procrastination and financial literacy. From the Irish Examiner’s reflection on “financial denial” to stark statistics showing one-third of adults lacking pension coverage, the challenge is real. But the opportunity is still open.
Whether you’re 25 or 55, starting now changes the game. The sooner you engage, the more you leverage time, compound growth, and strategic choices. And the more you do that, the better chance you have of a retirement that’s not simply about the State pension or luck, but about choice, comfort and security.
If one thing is clear: Let today be the day you shift from “I’ll get to it later” to “I’m building for tomorrow.” Your future self will thank you.
Himani Verma is a seasoned content writer and SEO expert, with experience in digital media. She has held various senior writing positions at enterprises like CloudTDMS (Synthetic Data Factory), Barrownz Group, and ATZA. Himani has also been Editorial Writer at Hindustan Time, a leading Indian English language news platform. She excels in content creation, proofreading, and editing, ensuring that every piece is polished and impactful. Her expertise in crafting SEO-friendly content for multiple verticals of businesses, including technology, healthcare, finance, sports, innovation, and more.
