New research shows there has been in an increase in the number of Irish adults who do not have a retirement plan in place.
The research from the Consumer and Competition Protection Commission found that one-in-four remain unprepared for retirement, up from one-in-five last year.
A third of pension holders also regret not starting their pension sooner, the CCPC said.
Pension ownership is lowest among 18 to 24-year-olds, while 21% of those aged 45 to 54 have no pension plans in place, which the CCPC describes as worrying.
36% of pension holders said they were unsure of how pensions work, while 46% of those with a pension said they review their annual statement, down from 51% last year.
Of those who do not have a pension in place, affordability and putting it on the long finger were cited as the top barriers.
25% of respondents said they could not afford a pension, down from 30% last year, while 19% admitted they have just not got around to it yet.
Among the 26% of Irish adults with no retirement plan in place, 61% now expect to rely on the State Pension to fund their retirement. The CCPC said this was a noticeable increase from 53% in 2024 and 43% in 2023.
“This growing dependence on the State Pension is accompanied by a sharp decline in expectations around rental income, which dropped from 22% in 2022 to just 9% in 2025, suggesting a significant shift away from property-based retirement strategies and highlights increased vulnerability among those without private pension arrangements,” the CCPC added.
Grainne Griffin, Director of Communications at the CCPC, said that this year’s research confirms that Ireland’s pensions gap remains a concern, even among those just a decade or two away from retirement.
“With over a quarter of adults still without any retirement plan in place, and others regretting not starting sooner, the message is clear: it’s never too early, or too late, to take action,” she stressed.
She also noted that retirement expectations are shifting with only 19% expecting to retire at 65, compared to 25% in 2024, while a similar proportion of men and women, 20% and 21% respectively, now expect to work until age 70 or beyond.
“Financial advice continues to be underused, with 66% of those surveyed stating that they have never spoken to a financial advisor about their retirement plans,” she added.
With auto-enrolment due to begin in January 2026, employers and employees now face important decisions about how best to prepare.
The Head of Financial Services at SYS Financial Keith Dundon advises employers should be reviewing their options now in advance of 1 January.
“There’s a pay reference period going to take place where for three months leading up to it employees will be assessed for their eligibility, so although the start date is the 1st of January, they need to be acting now to see what their options are and which is best for their business,” said Mr Dundon.
According to Mr Dundon private pension schemes offer more control, flexibility, and tailored benefits for staff recruitment and retention.
Employers can manage costs and administration more effectively, while employees gain greater access to tax relief, choice in investments, contributions, and retirement options.
“It’s fantastic that auto enrolment is being brought in, it’s going to improve a lot of individuals’ retirement outcomes,” he said.
“But for employees, from what we’ve seen, a private pension is the best fit for them. First of all, it avails of more tax relief, so they can get up to 40% tax relief in a private pension, whereas auto enrolment is 25%.
“It doesn’t look like there’ll be any advice in auto enrolment, so outcomes could be poorer with the lack of advice, and then the flexibility and choice with regards to how they access their benefits, how they invest it, and when they take their benefits as well, is a little bit more restricted in auto enrolment versus a private pension,” explained Mr Dundon.
Additional reporting by Gail Conway