Northern Ireland is heading for a pensions crisis with less than half of people making cash plans for retirement, a new report revealed today.
As millions of people across the UK were warned of crippling financial hardship, a staggering lack of preparation for life after work emerged. General Consumer Council for Northern Ireland chiefs, who carried out the study, urged the public to start saving now - or face poverty.
Mr Alan Walker, head of consumer affairs, said: "With an ageing population, Northern Ireland consumers need to be more aware of their own retirement provision and not rely on the basic state pension to support them in the future.
"In 2003, the basic state pension was only worth 15 per cent of the average annual UK income and this is expected to fall to 5 per cent over the next 50 years."
According to the analysis, only 39 per cent of people in the province said they had pension provision in place for retirement. Just 8 per cent of those aged 16-24 have made arrangements.
But more alarmingly, fewer than half (48 per cent) of those questioned in the group closest to retirement (50-64) said they had a pension in place.
Knowledge of pension issues was equally low, with 48 per cent admitting to little or no awareness.
Ignorance was highest among young adults and those from tough economic backgrounds. More than a third (39 per cent) in the 50-64 year-old age bracket owned up to knowing nothing.
Savings habits made for more depressing reading. One in five (20 per cent) had nothing stored away, and another 13 per cent sitting on less than a month's income.
The results were disclosed as a major new study warned workers will face a 30 per cent cut in their retirement income unless urgent action is taken. More than 12 million people are not saving enough to cope with life after they work, the Pensions Commission report found. The commission report showed that Northern Irish pensioners were, relatively speaking, the poorest in the European Union.
Using 2001 data, it found close to 45 per cent of people over 65 had income of less than 60 per cent of median employment income. - (PA)
