A Bank of Ireland survey has revealed that one in three people are planning more for their retirement ever since Covid-19 hit.

However only 53% of those surveyed understand how pensions work - with men (59%) declaring a better knowledge of this area than women (47%).

Bernard Walsh (pictured), Head of Pensions & Investments at Bank of Ireland, commented: “Many people still view the pension area as a complex one, and something that’s hard to access. They are put off by this perceived complexity, and then delay taking the necessary next steps.

“But our clear advice to customers is to start with the basics and to build up your knowledge and understanding which will help inform the planning for your financial future.”

Affordability is the main blocker when it comes to taking out a pension, according to the research. One in three people in the 23-30 age cohort don’t understand how pensions work and therefore doing nothing about it.

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Walsh added: “Getting expert advice to explain the benefits of saving for retirement is critical in making people more comfortable with this topic.

“The other major issue that needs to be addressed is the imbalance in pension knowledge between men and women. Our recent Financial Wellbeing survey showed that women are less confident than men when it comes to managing money, a clear imbalance that we need to rectify.”

Bank of Ireland is running a webinar series called Pension Pot. For details, see https://personalbanking.bankofireland.com/plan/pensions/pension-pot/

Meanwhile, Aviva research of 1,400 respondents undertaken in August 2021 has found that an estimated 780,000 people will still be paying off their mortgage or paying rent in retirement. This is highest amongst those aged between 35-44 years, at 36.5%.

Almost half (44%) of those surveyed believe that they will most likely have to take up another full or part-time job to supplement their income in retirement, 10% of whom will be seeking a full-time position.

While 31% of respondents claimed that they won’t need to work in retirement to supplement their income, 25% said that while they may well take up another job it would only be because they enjoy working.

Aviva’s Stephen Rice commented: “A Central Bank of Ireland report published in July reported that the over-60’s currently represent a quarter of all cases in long-term mortgage arrears.  The reality is that this figure is likely to increase further as will the incidents of people struggling financially in retirement unless people begin to save for their retirement earlier and take advantage of the tax benefits that are available to pension savers.

“With inflation in Ireland currently running at a 10-year high and with deposit interest rates primarily in negative territory, savers should consider investing their hard-earned savings into their pension.”