People living in Connacht and Ulster are more likely to be happier in retirement than those living anywhere else in the country.
That is according to the latest Retirement Pulse survey carried out by Standard Life. The study, which examined attitudes towards retirement, found that the majority of retirees (89 per cent ) are happy in retirement. Almost three out of five people are very happy with retirement, with this being more likely in Connacht/Ulster (70 per cent ).
Spending additional time with family and devoting more hours to existing hobbies and interests were how the majority of Connacht retirees said they spend their time. One-third (10 per cent higher than the national average ) said they volunteer in the community.
Given the level of happiness in retirement, 30 per cent of respondents in the west and north wish they had retired sooner compared to less than one in five (18 per cent ) for the rest of the country.
Preparedness was noted as a key factor to a successful retirement in Connacht and Ulster, with nearly half (43 per cent ) of retirees advising people to put money into their pension sooner rather than later, while almost a third (30 per cent ) advised investing more in a pension.
The survey highlighted a shift in focus regarding pensions. Irish people are engaging more closely with their pensions since the start of the year, despite just 30 per cent of non-retired adults feeling financially prepared for retirement.
This confirms the broader findings which show that more than three-quarters (77 per cent ) of the Irish adult population regard having a pension as essential to their retirement plans.
Despite feeling financially unprepared for retirement, more Irish people are keeping up to date with their pension, feeling confident that they are making the most of it, and are more knowledgeable about the tax relief to which they are entitled.
Fewer respondents (46 per cent ) feel positive thinking about their finances, compared to 57 per cent in February when the previous research was undertaken.
Less than two-thirds (62 per cent ) stated they were frequent savers compared to 65 per cent previously while more (53 per cent ) felt anxious thinking about their finances, compared to 48 per cent in February.
More than half of non-retired adults in Ireland feel more mentally or socially prepared for retirement, than they do so financially, the study indicates. More than a third (39 per cent ) are unaware how much they will need for a comfortable retirement. This is most likely for millennials (47 per cent ), females (40 per cent ), and those earning less than €30k (40 per cent ).
However, confidence in financial preparedness increases when people are retired, with retired adults feeling almost as financially prepared (74 per cent ), as they do mentally (79 per cent ), and more so than they do socially (71 per cent ).
Of those who felt financially prepared, 85 per cent owned a pension. Those retirees who feel anxious about their finances started their pension on average at the age of 36, with those starting just four years earlier much more likely to feel prepared for retirement. The top advice from retirees was to start saving into your pension sooner rather than later, with 43 per cent recommending this.
Travel tops the list of retirement plans for those yet to retire, followed closely by increased family time, and relaxing. However, for retirees, putting their feet up was the least appealing retirement activity. Three out of five people currently spend their retirement prioritising more family time, more than half have dedicated additional time to their existing hobbies and interests, and slightly less are travelling more. A third have taken up a new hobby or learnt a new skill.
Commenting on the survey, Alan McCarthy, the head of distribution at Standard Life, said that although the more uncertain macro-economic backdrop has given rise to more financial concern among people, the research indicates pension schemes are a major confidence booster when it comes to financial planning for Irish adults.
“Retirement, for some people, might be an unnerving prospect which is why, according to our findings, many people are not actively thinking about it. However, we should be inspired by the enriched, happy lives that the majority of retirees today are living and take note of their simple yet profoundly influential advice. Get a pension and set the groundwork early on, then build from there. By feeling financially prepared, you’ll have greater freedom to consider the other aspects of retirement that are equally as important. The possibilities are endless with the right plan in place.”
