Dun Laoghaire dwellers best for pension savings

Residents of Dun Laoghaire Rathdown in south county Dublin are saving the most for their pension, according to an analysis by Irish Life, with an average monthly contribution of €463, considerably more than the national average of € 343, and ahead of those living in Dublin city (€413); Fingal (€374); and south Dublin (€343).

Pension savers in Cork are also close to the top of the league table, with monthly savings of €395, ahead of Galway city (€ 387).

On the other hand, those saving for their retirement in Co. Sligo are contributing the least to their pensions each month, at just €230, behind Longford (€231) and Offaly (€234). However, the difference in living costs likely accounts for some of this differential.

Overall, the data shows that the recovering economy means that people are saving more for their retirement. Indeed the average pension contribution with Irish Life during the first half of this year was € 562 per month, compared to € 372 per month in 2010, an increase of over 30 per cent.

Women continue to underperform men in terms of pensions savings, with men accounting for about 70 per cent of all of Irish Life’s customers. Waterford city has the highest proportion of female pension contributors where women account for 37 per cent of customers, with Donegal, Co.Waterford, Laois, Co.Kilkenny county and Monaghan all at the bottom of the table with just 26 per cent.

The recovery also means 2015 could be the first year since the downturn that that there will be a fall in the average age of people starting pensions.

"In 2008, the average age of a new pension customer was 35. This increased to 42 years old during the recession, as Irish people in their 30s focussed on essential financial payments such as mortgages and other shorter term commitments. However, the average age stopped rising last year and it looks like it will fall to 41 this year. We have also seen a significant increase in the overall market for personal pensions with sales up by 18 per cent for the first half of 2015," Gerry Hassett, managing director of Irish Life Retail said.

However, almost one in two working adults (49%) still do not have a private pension, with this figure increasing to 54 per cent for 24-35 year olds.