Savers’ understanding of pensions has not kept pace with participation in Ireland, and they are facing a growing challenge to be prepared for retirement as a result, a report from the Retirement Planning Council of Ireland (RPCI) has warned.

The report, commissioned by FPSB Ireland, IOB, LIA, and the Retirement Planning Council of Ireland, noted that pension scheme members were often delaying retirement due to financial uncertainty, rather than by choice, leaving Irish employers with workplace planning uncertainty.

It called on employers to adopt a clarity-first approach to help people understand what their savings mean at different retirement ages, and treat retirement readiness as a ‘core element’ of workforce strategy.

Research included in the paper, conducted by Amárach Research, found that 72 per cent of employees believed employers should support the transition to retirement, while 60 per cent would welcome professional support to help with retirement planning.

More than half (57 per cent) of employers agreed they had a role to play in retirement planning support and 63 per cent would welcome external specialist support.

However, just 32 per cent of employers currently offered a retirement planning programme.

The report stated that while auto-enrolment had fixed the participation challenge, it had not solved the understanding challenge, and many employers lacked the clarity or confidence to engage with long-term decisions.

This was demonstrated by the fact that 35 per cent of Irish employees with a pension did not understand their company scheme and 45 per cent said they did not understand retirement planning.

Under a third (31 per cent) of employers felt employees were financially ready to retire and 32 per cent believed employees were prepared for retirement in a broader sense beyond finances.

“Across Ireland, significant progress has been made in encouraging pension participation,” FPSB Ireland CEO, Emer Kirk, said in the report foreword.

“Automatic enrolment and increased awareness mean more people are now saving for retirement than ever before.

“However, this research highlights a critical next challenge: participation is not the same as preparedness.

“From our perspective across the financial planning profession, the central issue is no longer whether people are saving — it is whether they understand what those savings will deliver.

“Many employees remain unclear about the level of income their pension will provide in retirement, and whether it will be sufficient to support the lifestyle they expect.

“This gap between saving and understanding has important consequences. Without clear visibility of future income, individuals cannot make informed decisions about contribution levels, retirement timing or long-term financial security.

“As a result, many experience uncertainty and delay key decisions, contributing to the growing disconnect between when people hope to retire and when they believe they realistically can.

“Retirement readiness is not a single moment — it is a process. Strengthening understanding is the next step in that journey.”

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