WEALTH June 24, 2026 0 Comments

The Shocking Truth Behind Average Weekly Retirement Income That Banks Don’t Want You to Know

Ever wonder why some retirees have twice the spending power of others? Well, the secret sauce appears to be tucked away in occupational pensions. According to fresh insights from the Economic and Social Research Institute (ESRI), folks with a work pension are clocking in nearly €460 a week — that’s about €24,000 a year — compared to just €230 for those flying solo without one. Surprising, right? What’s even more intriguing is that both groups tend to pull the plug on their careers earlier than planned, yet those without pension coverage scramble with thinner paychecks in their golden years. Ireland’s historical reliance on the State pension has left a sizable portion of older workers vulnerable, forming a financial tightrope walk many don’t see coming. This isn’t just about numbers; it’s about security, peace of mind, and yes — sometimes good old-fashioned luck that comes from starting a pension plan on time. If you’ve been procrastinating on saving for later, this might just be the nudge you didn’t know you needed. LEARN MORE

People who save into a work pension have double the retirement income of those who do not, research shows.

Individuals with an occupational pension have an average weekly retirement income of about €460 (almost €24,000 a year), compared to €230 (about €12,000 a year) for those without coverage, the Economic and Social Research Institute (ESRI) found.

Employees with and without occupational pension coverage retire earlier than planned, but those without such a pension face lower incomes in retirement, according to the study, which was presented to the annual Budget Perspectives conference yesterday.

Ireland has historically relied heavily on the State pension as the primary source of income in retirement.

While occupational pension coverage has risen steadily in recent years, a substantial share of older employees still approach retirement without “supplementary pension provision”, the report shows.

Report author Dr Dora Tuda, of the ESRI, said: “While most employees retire earlier than they plan, those without occupational pension coverage face the greatest financial challenges.

“They not only retire earlier than expected, but do so with significantly lower incomes, raising concerns about financial security in older age, especially for women.”

Report co-author Siddhant Seth said: “As Ireland rolls out automatic enrolment, expanding occupational pension coverage will be key to improving income adequacy in retirement, even if it might not substantially change the average retirement age.

“This research highlights the importance of continued monitoring to assess whether expanded pension coverage improves retirement outcomes and reduces gender inequalities.”

The findings show employees with occupational pension coverage plan to retire earlier at around 63 and six months, while those without an occupational pension coverage plan to do so close to the State pension age of 66.

However, in practice, both groups retire at a similar average age of around 61.

The gap between planned and actual retirement age is particularly pronounced among women without occupational pension coverage, who retire, on average, at around 58 and six months, despite planning to retire closer to 66.

Although retirement ages are similar for those with and without occupational pension coverage, this research highlights differences in retirement incomes.

People with occupational pension coverage have a median weekly retirement income of €460, compared to €230 for those without.

This difference is driven almost entirely by occupational pension income, as State pensions and benefits are similar in both groups.

The gender pension gap is driven by occupational pension coverage, as men and women without occupational pension coverage receive similar weekly income.

Pensions expert John Lowe said: “It’s certainly always well worthwhile making a contribution into a pension. I keep saying, it is the best investment in Ireland bar none.”

Individuals with an occupational pension have an average weekly retirement income of about €460 (almost €24,000 a year), compared to €230 (about €12,000 a year) for those without coverage, the Economic and Social Research Institute (ESRI) found.

The research also examined how occupational pension coverage relates to both the timing of retirement and income adequacy in retirement.

The results suggest that occupational pension coverage plays a crucial role in ensuring adequate living standards in retirement, but has a limited impact on the timing of workers exiting the labour market.