Now that we can all expect to live longer, we need to prepare better for retirement.
The Irish Times â€“ Special Report by Conor Pope.
First, the very good news.
You are likely to live a lot longer than your grandparents. Thanks to medical advances and increased awareness about living a healthy lifestyle, we are set to live a lot longer than previous generations â€“ at least a decade, in fact. A person who retires at 65 now can expect to live for more than 20 years. And the news for children born in the 21st century is even better again.
While this longevity is worth cheering about, it does have a financial downside: it is putting pressure on pensions that would have been unimaginable 30 years ago.
Our good health is not the only reason pensions have been ailing of late.
We are living through some of the worst economic turbulence in the history of the State with hundreds of thousands of people living day-to-day and struggling to set cash aside for the weekend never mind their long-term future.
This means that too many are putting saving for their retirement on the back burner.
While this is understandable it is wrongheaded. Pensions matter and they matter now more than ever.
They are something that everyone needs to think about. If you havenâ€™t started one already then start one now. Even if you have started one, you should start to save more.
â€œPeople use the first phase of their life preparing for the second phase through education,â€ says Maura Howe of the Pensions Board.
â€œBut if they donâ€™t use the second phase to prepare for the third by investing in the future financial security, the last 20 or so years could be very hard.â€
Read the full article here.