A comfortable retirement for the price of a Cappuccino per day?

- A chance to turn €2 a day into a €204,000 Pension
- Bank of Ireland Life states amount saved into pensions remains too low

Launching its pensions campaign today (19 September 2005), Bank of Ireland Life urges Irish consumers to start a pension today and to provide adequately for a comfortable retirement. Almost one million Irish workers still have no pension plan in place, and as a result, may have to rely on the state pension of just €179 per week to survive.
In a recent survey of its personal pension customers, Bank of Ireland Life today revealed that the average customer is saving approx €300 per month towards their retirement. This would provide a fund of about €150,000 at retirement, which will provide a monthly pension of €910. For most of us, this would represent a significant drop in income, meaning we couldn't afford to maintain our current standard of living. Furthermore, this amount is quoted in today's money and doesn't take account of inflation, which would reduce its value by the time the customer reaches retirement age.
By simply investing the price of a cappuccino per day from the age of 18, individuals could provide a pension head start of €204,000 for later life. This is not a huge amount when you allow for inflation and the cost of a pension, however it shows how a little put away today could really make a difference for a bright and comfortable future -and that's a habit worth keeping!

Commenting Brian Sullivan, Pension Sales Manager with Bank of Ireland Life said: 'Many people are waiting until they have a lump sum to start their pension, or until they are earning more. Very often, however, that day doesn't come and they are left in the position of starting a pension plan too late in life. What people fail to see is that putting a little away from an early age could really get your retirement savings off to a good start, aiming to boost your fund at retirement.'
Brian Sullivan continues: 'Of course, possibly the most important factor in determining the size of your fund at retirement, is the investment performance achieved. If a customer invested €400 per month in a Bank of Ireland Life Pension since it first started in 1987, they would now have a lump sum of over €212,000 for their retirement that's more than doubling your investment.*
Bank of Ireland Life's pension investments are managed by Bank of Ireland Asset Management (BIAM), Ireland's largest and award winning fund Manager with €46bn in assets under management. Together, they have won 12 of the last 20 MoneyMate investment awards for managing money better.

The Irish state pension is the lowest in Europe at just 30% of average earnings. With pensions coverage in Ireland standing at just over 50% (an increase of just 2% in the last 2 years), PRSAs are unlikely to succeed in their stated objective of increasing pensions coverage from 50% to 70% by 2007. Bank of Ireland Life recently called on the Government to introduce a new style 'Bonus PRSA' product which it believes will appeal to Irish savers.

This long-term savings plan would feature:

-- Ends --

Note to Editors
The research is based on a large sample of Bank of Ireland Life's Personal Pension customers.
* This figure is based on the actual performance of Lifetime's Pension growth Fund from 01/09/1987 to 01/07/2005. Past performance is not necessarily a guide to future performance. Unit prices can fall as well as rise and investments are not guaranteed.

For Reference:
Jenni Smith
Life & Pensions Marketing 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, Pensions, Savings and Investment products, which are distributed in over 280 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 & Investments Manager, who is trained to help identify our customer's financial needs and assist them with any queries they may have. Our Insurance & Investments Managers are committed to providing quality advice and specialist expertise to help our customers find the best solution to their needs.