ADULTS in Ireland who have yet to retire think they’ll need €40,860 on average a year to get by in retirement – with the figure slightly lower in Munster.

Men believe they’ll need significantly more than women, expecting to require an annual retirement income of €44,000 on average, compared to €38,000 for women, a new survey by Royal London Ireland shows. 

Their research shows the vast majority (97%) of people who have yet to retire in Ireland believe that the State pension alone (€15,000pa) is not enough to get by on in retirement.

To achieve a retirement income of €40,860 by the current State pension age of 66, an individual on a salary of €61,908 who starts their pension at the age of 30 would need to save the equivalent of 22% of their salary a year – the equivalent of €1,135 a month.

According to the Royal London Ireland survey, 10% expect to need between €75,000 and €100,000 a year or more.

At an average of €46,093, those living in Leinster (excluding Dublin) have the highest expectation in terms of amount they feel they will need at retirement, while those living in Connacht and Ulster have the lowest, at €34,723. 

The average for Munster residents is €38,049, with just 3% of Munster residents surveyed confident they could get by on the State pension alone.

When looking specifically at urban and rural dwellers, those living in urban areas expect to need €7,536 more on average a year in retirement income than their rural counterparts (€42,852 for urban dwellers versus €35,316 for rural dwellers).