The gap between pension savings and pension income is growing, and Ireland is in the most precarious position in Europe says a report by insurer Aviva. To maintain the same level of pension that a retireee would have received in 2010, a persion would need to save an additional €1000 per month. The situation has been excerbated by three factors:-
The OECD target is that a person should receive a pension of 70% of pre-retirement income. The report states that a person retiring next year would receive just 46%. It's reported that this figure willl reduce to 40% by 2057. Lower earners are assumed to require an income of 90% of pre-retirement income whereas middle earners are assumed to need 65%.
The deficit depends on both age and current income level. A person aged 20 would need to increase pension savings by €4,400 per annum, whereas in 2010 that figure would have been €1,700.
Increase in annual contributions required by Age
Aviva provide an online pension gap calculator