One in seven Irish people leave their retirement planning until just six months before the end of their career, new research has shown.
A survey of 267 people for the not-for-profit group the Retirement Planning Council (RPC) found that Irish workers are putting off planning the next phase of their lives until they are almost due to retire.
Almost all respondents were aged in their 60s, and only one in 20 had started planning in their 30s. By contrast, 14% had only begun considering their post-work years within the six months prior to leaving their job.
Just under one-third of soon-to-be retirees had made preparations two years beforehand, while 20% had started planning in their 50s.
Financial security remains the primary worry for those approaching the end of their working lives, with 56% citing it as their main concern. The lack of a daily routine to fill the day was the second biggest worry at 35%, followed by a lack of social interaction at 33%.
Laura Farrell, the chief executive of the Retirement Planning Council, argued that retirement is not something that should be put on the back burner until a person’s sixties. She noted that the reality of retirement in Ireland has changed in recent years.
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We are living longer and getting better at looking after our health, so most of us can expect to continue an active, busy lifestyle once we enter the next phase, she said.
As with any major event, planning is the key to a successful outcome. The sooner we look at the practicalities of what we’re facing, in terms of income, social life and activity levels, the better our chances of enjoying the reality we want to have.
It was also revealed that 20% of those polled said that chatting with a friend or family member prompted them to start thinking or planning for the lifestyle change. A further 13% said their preparation was kickstarted by a conversation with a colleague.
Most people were looking forward to having more free time (78%) following their retirement, while 63% of respondents said they were hoping to spend more time with family.
It is not uncommon for financial preparation to lag behind other life events, a trend often seen when major lifestyle changes are deferred until the very last minute. This delay can limit the range of options available when the time comes to leave the workforce, forcing individuals to rely on immediate, short-term solutions rather than a long-term strategy.
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