Pension savings lacking - B of I

Almost one million Irish people have no pension provision, while many of those that are investing for their retirement are not saving enough, one of the State's biggest banks warned yesterday.

Bank of Ireland's life and pensions arm, Bank of Ireland Life, said yesterday that only 52.4 per cent of workers aged 20-69 are investing in a pension, compared with 52.2 per cent at the beginning of 2001.

The bank said that, by June, just 33,000 people had taken up Personal Retirement Savings Accounts (PRSAs) since their introduction in February 2003.

At the same time, life expectancy has increased, with men living an average of 15.4 years after 65 and women living 18.7 years after retirement.

Mr Brian Sullivan, pension manager with Bank of Ireland Life, warned that consumers needed to provide adequately for their retirement. "To guard against the financial risks that old age presents, individuals should start saving now," he said.

Mr Sullivan added that only 27 per cent of people believed they will have saved enough at retirement to provide for themselves.

"With a significant amount of the population who currently own pension plans showing a deficit, it is obvious that there needs to be an attitudinal change in our society towards planning for our future," he said.

The bank has set up a campaign targeting workers who have yet to provide for a pension. It will highlight the potential savings if they start a pension before the October 31st tax deadline.