63% of Irish women don’t know how to start a pension

Female savers are falling behind...

A new study from Standard Life has warned that Irish women are falling behind when it comes to preparing for their future and life after retirement.

It's concluded that the average woman needs €30,600 per annum to live comfortably after they retire - but female workers are saving only €1,500 per year. That excludes the maximum state pension of almost €12,400.

"The best case scenario for the average woman is a retirement income of €13,900 per annum which is not enough to live on comfortably ... We know women expect a high standard of living in retirement, winter sun holidays, dining out, socialising etc. That’s not going to happen on less than €14,000 per annum,” Aileen Power, Standard Life’s women’s pension’s spokesperson added.

The firm adds that not everyone will be entitled to the maximum contributory state pension especially those who have taken time out of work or who worked abroad particularly in non-EU countries.    

According to the research, 63% of women don’t know how to start a pension and 75% of women don’t realise pensions are tax efficient.

The investment firm recommends that workers should use online resources such as pension calculators to make sure that they are saving at the right level. It also suggests joining employers' occupational pension schemes when favourable terms are being offered.