One third of people who don’t have a pension plan say they can’t afford the contributions due to other outgoings such as rent.

That’s according to a Matrix Recruitment survey which found that only half of respondents contribute to a private pension scheme. Two fifths say they are not confident that their pension will be enough to live off in retirement, while one in three esponded that they simply didn’t know if their pension would be enough for retirement.

The survey polled 533 adults over the age of 18.

With the state pension age a key issue in the general election, Matrix believes that the heightened awareness and conversation around pensions has influenced its survey, whose findings show that 29% of adults without a pension are planning to start one this year, and that two thirds of those with a pension said that they plan to increase their contributions in the future.

Matrix Recruitment’s Breda Dooley said: “For some people, pensions just aren’t on their radar, but for the majority of those who don’t have a pension the barriers include the high cost of rent and day-to-day bills (37%), waiting to earn more money (16%), and not knowing how to start a pension (14%).

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“The more traditional reasons for people not starting a pension have been well documented. Lack of knowledge, inertia and the assumption that a pension is not relevant are all issues people generally reference.  

“According to these findings, we are seeing that a significant number of people without a pension saying that they can’t afford it. What makes this more worrying is that with Ireland’s growing ageing population and the pension savings gap getting wider, the real question is, can people afford not to have a pension?”

She added: “One in five respondents said that more people would start a pension if the process was easier. Setting up a pension is not actually that difficult, but it’s going to take a concerted effort from all stakeholders to eliminate the perception that starting a pension is complicated and confusing.”

According to Matrix, a workplace pension scheme has influenced some 43% of respondents to remain with their employer.

“Employers have an important role to play when it comes to awareness, education and supporting workers in planning for retirement. What’s particularly interesting is that 86% of those surveyed said that they would increase their pension contributions if their employer matched them," said Dooley.

Full details of the survey are available here.