Standard Life Media Release

Almost half of Irish people want to retire in the sun or by the sea … on €3k p.a.

Average person needs €30k p.a. to live on in retirement but is saving just 1/10 of this

A recent survey* commissioned by Standard Life of 1,000 respondents reveals 49% or almost half of Irish people would like a home in the sun or by the sea when they retire. A home in the sun is more sought after than one by the sea or in the country. The single biggest preference (at 29%) was for individuals to stay in their current home. The second most popular choice was to have a home in Ireland combined with a home in the sun.

Just 13% of people would like to retire to the country. This choice is most popular with 22% of 25 to 34 year olds opting for a country life.
For those aged 65+, their top choice is a home in Ireland and a home in the sun with 56% choosing this option.

Where do you want to live in retirement?

I want to stay in my current home	29%
I would like a home in the sun and a home in Ireland	24%
A home in the sun (Spain, Portugal, France etc.)	14%
A home in the country	13%
A home near the sea	11%
I want to stay in the same area as my current home but in a smaller property	9%

When asked: How much total income do you think you need to retire on to live comfortably? The average income chosen by respondents was €31,230.

The average person has saved a retirement income of €3,106 p.a.** This represents just 10% of their desired €30k p.a. retirement income. This excludes the state pension of up to €12,000 p.a. which not everyone is entitled to, nor is everyone entitled to the full amount necessarily. It should also be noted the state pension is expected to fall in real terms in the future as its long term affordability is in serious doubt.

“People have high expectations from their retirement and want to really enjoy it. An affordable home in the sun is do-able, but you need to save adequately for it,” said John McInerney, pensions technical manager with Standard Life. “My advice is to calculate how much you need to buy your house in the sun and how much income you need to live on comfortably. Sit down with a financial adviser and work out how much you need to save between here and your retirement. Then you can look forward to it,” he said.

Even if you include a full state pension in addition to the €3,106 p.a., you’re still barely above €15k p.a. which is not a realistic amount to own a house in the sun and live comfortably, according to McInerney.