The Government faces an uphill task getting the word out about its plans for a new mandatory pension plan.
It is planning to launch a new auto-enrolment pension scheme for those with no work pension or no private scheme later this year. It represents the biggest shake-up in pensions ever in this country.
But research from the Central Statistics Office (CSO) shows that just one in 20 of those with no occupational pension from their current employment are aware of the planned auto-enrolment retirement savings scheme.
Social Protection Minister Heather Humphreys has insisted the new auto-enrolment pension system will be introduced this year.
This is despite industry figures claiming its introduction is likely to be delayed again.
It will mean pension contributions will be made by some 750,000 employees who are not part of a work pension scheme, with their employers and the State also contributing.
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The scheme has been promised now for the last 18 years, but its introduction has been subjected to repeated delays.
A survey by the CSO shows that men were more aware of the scheme than females.
Some 20pc of males with no current occupational pension cover had heard of the planned Government scheme, compared with 17pc of women.
Males aged 45 to 54 years were most aware of the scheme.
One in five Irish nationals had heard of the planned pension scheme, compared with only one in non-Irish nationals.
Of respondents who are eligible to be auto enrolled in this planned retirement savings scheme, and were aware of the scheme, over seven in 10 said that they would stay in the scheme if automatically enrolled in it.
This is an increase of seven percentage points on the same period in 2022.
Irish Congress of Trade Unions (ICTU) social policy officer, Dr Laura Bambrick, said it was a concern that there was such low level of awareness about the new scheme among those who are set to be enrolled in it.
“The lack of public awareness about the scheme among the public is worrying especially as it is going to impact on people’s pay packets,” she said.
She said Congress fully supports the introduction of auto-enrolment and did not want to see any further delay in being rolled out.
Workers and their employers will each initially pay 1.5pc of a person’s gross salary into the scheme.
From year four, the will increase to 3pc, rising to 4.5pc in year seven and 6pc from year 10.
For every €3 a worker pays in, their employer would pay the same and the State would top this up by €1.
The CSO survey found that for those who do have a works or private pension the State pension is set to be the main source of income for six out of 10 of them.
Statisticians found that more than two-thirds of workers have some form of pension cover outside of the State pension. However, many the figures are skewed by high levels of pension coverage in the public sector.
Pension proposition lead at Royal London Ireland Mark Reilly said it was worrying that large numbers in the private sector have no occupational pension.
“It is concerning that the CSO report shows that almost a third (32pc) of workers have no private pension coverage and will therefore be depending only on the State pension in retirement,” Mr Reilly said.
He said the maximum State pension is currently €277.30 a week for those aged 66 to 79, or €287.30 a week for those aged 80 or older.
Mr Reilly said it is also concerning that the report shows there has been only a very slight improvement in private pension coverage since the latest figures were published a year ago.
