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The Actuary The magazine of the Institute & Faculty of Actuaries

Annual retirement savings shortfall in Ireland quantified at 6bn euros

A study by actuarial and strategic consultants Life Strategies has identified a retirement savings shortfall of 6.0bn euros per annum in the Irish market. This corresponds to an average shortfall of 11% of income or about 3,000 euros per annum per person in the labour force.

The study, which was commissioned by the Irish Insurance Federation, assesses required income in retirement, current pension coverage, current assets held, and the current level of savings for 25 segments split by age and income band. Life Strategies makes a number of suggestions on ways that the shortfall could be tackled, including a likelihood that many individuals will have to work beyond 65.

The results of the study can be downloaded in report form from Life Strategies’ website at www.lifestrategies.ie. A principal difference from the similar study carried out for the ABI recently is that equity in residential property is not treated as a personal asset in the Irish case.