Irish Life, the market-leading provider of occupational Defined Contribution schemes in Ireland, has published a detailed ‘Retirement Readiness’ report, analysing potential outcomes for members of their book of Defined Contribution schemes. Almost 1,400 company schemes covering 38,000 members were analysed for the purpose of the report.
Based on the analysis, the average age that someone started a DC pension plan was 37 years of age and the average contribution rate was 10.3% of salary, including employer and employee contributions. The report highlights how this level of contribution will result in an insufficient pension at retirement with the average pension scheme member saving towards a pension in retirement of €7,900 per year or just 17% of their salary in retirement. This amount would be topped up by the State Pension in retirement but would still represent a significant drop in income for most people.