Bank of Ireland Life urge consumers with no pension provision to take action now

As average life expectancy increases, the need to adequately fund for retirement becomes increasingly important

Bank of Ireland Life today, (26 September 2004) announced details of its pensions campaign targeted at the almost one million people who have no personal pension nor contribute to any pension scheme through their employment.

Worrying trends show that even of those who are contributing to a pension, many are currently under-funding. The rate of pension coverage for all persons in employment aged 20-69 has increased to just 52.4% compared to 52.2% at the start of 2001, with pension coverage for the self-employed having fallen by 1%. Despite the introduction of PRSAs in February 2003, recent figures compiled by The Pension Board show that just 33,000 PRSAs have been sold up to June 2004.

In addition statistics show that people are living longer, with the average life expectancy at the age of 65 at 15.4 additional years for men and 18.7 more years for women. This means that pensions will now have to be paid in over a longer period of time in order to adequately fund for a longer retirement.

Bank of Ireland Life's campaign also highlights the potential savings an individual can make by taking out a pension prior to the tax deadline of the 31st of October.

Commenting on the campaign, Brian Sullivan, Pension Manager with Bank of Ireland Life said:

"We need to ensure that consumers are providing adequately for their retirement. To guard against the financial risks that old age presents, individuals should start saving now. If you are unsure as to whether the amount you are currently paying is adequate, I would urge you to go online to the Bank of Ireland website (www.bankofireland.ie) and access the Pensions Calculator. The calculator factors in your age, sex, the age at which you would like to retire, an optional spouse's pension, and your tax-free lump sum at retirement (if any). Based on this information, it provides you with an estimated weekly pension, estimated tax free lump sum, weekly state retirement pension, and your estimated total weekly income."

At present, only 27% of people believe they will have saved enough at retirement to adequately provide for themselves in the future. With a significant amount of the population who currently own pension plans showing a deficit, it is obvious that there needs to be an attitudinal change in our society towards providing for the future.

Commenting on the tax benefits available when taking out a pension, Sullivan noted;

"The tax relief makes an individual's pension a very cost effective way to provide for a comfortable retirement. For individuals on the higher tax rate, for every eur1 invested in a pension, the Government will allow 0.42 cent in tax relief. This tax saving is an added incentive for individuals to ensure they are contributing to their pension adequately".

Ends

For Reference:
Jenni Smith
Life and Pensions Product Manager
Bank of Ireland Life
Tel: 01 617 2575

Anne Mathews
Media Relations Manager
Group Corporate Communications
Bank of Ireland
Tel: 01 604 3836

About Bank Of Ireland Life:

Bank of Ireland Life is an independent company within the Bank of Ireland Group. We provide Life, Pension and Investment products, which are distributed in over 300 Bank of Ireland Branches throughout the country.

Bank of Ireland Life offers customers the accessibility and availability of professional financial advice through their local Bank of Ireland branch. In every Bank of Ireland branch, there is an Insurance and Investments Manger, who is trained to help identify our customer's financial needs and assist them with any queries they may have. Our Insurance and Investments Managers are committed to providing quality advice and specialist expertise to help our customers find the best solution to their needs.