Standard Life Media Release

Almost 2/3 want winter sun holidays in retirement on an income of just €3k p.a.

40% want to enjoy: European city breaks, 30% - weekend breaks in Ireland and 10% - ski-ing trips

Average person needs €32k p.a. to live on in retirement but is saving towards roughly 1/10 of this

A recent survey* commissioned by Standard Life of 1,005 respondents reveals almost two thirds (62%) of Irish people would like a winter sun holiday in the cold months when they retire on an average retirement income of just €3,400 p.a**.

Four out of ten (43%) want to enjoy European city breaks, almost a third (31%) want to have weekends away in Ireland and ten per cent would like to go ski-ing. “Even if you include the contributory state pension of up to almost €12,400~p.a. in addition to the €3,400 p.a., you’re still under €16k p.a. which is not a realistic amount to expect to holiday in the sun, or holiday anywhere not to mention live comfortably,” said Sinead McEvoy, Standard Life’s pensions technical spokeswoman.

68% of 45 to 54 year olds said they wanted a winter sun holiday when they retired.
Men (64%) are more likely to want a sun holiday than women (60%) and are more likely to want a city break (46%) than women (41%).
Women are more likely to want to spend the cold months with family and friends than men, 51% vs 39%.

Where you retire, during the cold winter months which of the following would you like to do?

A sun holiday	62%
Visiting family and friends	45%
A city break (Europe etc.)	43%
Relaxing at home	39%
A weekend break in Ireland	31%
A ski-ing holiday	10%

The average person has saved a retirement income of €3,400p.a.** This represents roughly 10% of their desired €32k p.a. retirement income. This excludes the contributory state pension of up to almost €12,400 p.a.*** N.B. Not everyone is entitled to the state pension nor is everyone entitled to the full state pension amount. In addition, 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 retirement and want to enjoy it. A sun holiday is achievable and some financially comfortable retirees go to the sun for 2-3 months (typically Jan–March) but you need to save adequately for it,” said McEvoy. “My advice is to calculate 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,” she said.

Ends

Notes for editors:

* The survey results are based on an independent, online survey conducted by iReach on behalf of Standard Life of 1,000 adults aged 18+ to Jan 5, 2017.
** This is based on average pension pot savings of €80,100 and using a level annuity rate of 4.3% for a 65 year old equals €3,400 p.a.
***This refers to the contributory state pension which increases to €12,400 from March 10, 2017. Weekly payment is €238.30 X 52 equals €12,392. Source: welfare.ie

For media queries contact:

Aileen Power, head of corporate communications (01) 639 7166 or mobile (086) 8506 281.