Informed Decisions Independent Financial Planning & Money Podcast Why Retirement Costs More Than We Think or Hope!
Sep 15, 2025
Retirement might be more expensive than we think! Many enter this phase relying heavily on state pensions, leaving them vulnerable. It’s revealed that a significant portion of adults are unprepared or regret delaying savings. Spending patterns can be surprising, often following a U-shaped curve—high costs initially and escalating health expenses later. With rising instant-spending habits, saving for tomorrow can feel daunting. Planning and early action are essential for a financially secure retirement!
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State Pension Dominates Retirement Income
- Ireland's State Pension (~€15,100 in 2025) dominates retirement income for many workers without private pensions.
- Tilda and CSO data show the State Pension comprises about two-thirds of income for households 65+ and 26% rely only on state income.
Underfunding Is A Global Problem
- The Ireland situation mirrors the US where Social Security and pensions form the bulk of older households' income.
- Vanguard and Poterba research show median DC balances are modest and Social Security often supplies most retirement income.
Many Are Unprepared Or Unsure About Pensions
- CCPC research finds 60% have some pension but 26% are completely unprepared and many don't understand pensions.
- Large shares regret starting late, lack advisor contact, and doubt their pension will provide a decent living.