Pensions remain a mystery to most people, BoI study reveals

MOST people do not know how pensions work, new research has revealed.

The survey from Bank of Ireland found that only 46% of people understand how pensions work and that only 39% were aware of the tax breaks. The research was published as part of Pension Awareness Week, which aims to raise awareness of retirement planning.

‘Lack  of understanding of pensions is a recurring theme, as borne out once again by our latest survey,’ said Bernard Walsh, Bank of Ireland’s head of pensions and investments. 

‘It’s human nature to shy away from areas believed to be complex, but in doing so we are delaying taking important decisions that are in our best interests and help identify how much people can afford to set aside to enjoy a comfortable retirement.’

The research also showed that 74% of people are putting day-to-day spending ahead of saving for the future, while  62% of pension holders are worried they aren’t saving enough.