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Most people unaware how much State pension pays out weekly, survey finds

Almost a quarter think it is more that the actual rate of €248.30, with some suggesting it is as high as €302.30 weekly. Photo: Marc Condren Expand

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Almost a quarter think it is more that the actual rate of €248.30, with some suggesting it is as high as €302.30 weekly. Photo: Marc Condren

Almost a quarter think it is more that the actual rate of €248.30, with some suggesting it is as high as €302.30 weekly. Photo: Marc Condren

Almost a quarter think it is more that the actual rate of €248.30, with some suggesting it is as high as €302.30 weekly. Photo: Marc Condren

Charlie Weston Twitter Email

Most people who are set to rely on the State pension when they retire are unaware what the weekly rate is.

When asked how much the State pension pays, almost a quarter thought it is more than it is, according to a survey of 1,400 people carried out by Aviva Life & Pensions Ireland.

Surveyors found that four out of 10 respondents believed it to be slightly less than the €248.30 per week.

But almost a quarter think it is more, with some suggesting it is as high as €302.30 weekly.

The findings come as arguments rage over the prospect of a €10 rise in the State pension in the Budget, and recommendations from the Pensions Commission about a seven-year delay in moving the pension age to 67.

Both Fine Gael and Fianna Fáil TDs are piling pressure on Public Expenditure Minister Michael McGrath to put an extra €10 on the State pension.

It emerged last month that pre-Budget work from officials at the Department of Social Protection found that an extra €5 a week on the pension would have little effect on reducing poverty.

Retired people were among those least at risk of poverty, according to an analysis in the Tax Strategy Papers prepared ahead of the Budget.

But there is huge political pressure for a rise in the State pension, especially with energy prices soaring.

The Aviva research found that 61pc of people who don’t have a private pension are unaware how much the State pension is on a weekly basis.

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However, the research findings show awareness as to the exact amount of the weekly State pension among those with an occupational or private pension is only marginally higher at 46pc as against the 39pc who have no private pension provision.

A total of 58pc of those who have a private pension claimed they were looking forward to retirement.

This is in sharp contrast to those who don’t have a private pension, with only 21pc of them saying they were looking forward to it.

Those aged over 55 are most looking forward to retirement.

The research revealed that just over half of those surveyed who had a pension are aware of the percentage of their pension they can take tax free on retirement.

The Pensions Commission has recommended that the age at which people get the State pension should increase on a phased basis.

It says the State pension age should begin to rise in quarterly increments to 67 between 2028 and 2031.

It then recommends that the State pension age gradually increases to 68 by 2039.

Pensions manager at Aviva Stephen Rice said: “In light of the Government’s current focus on the sustainability of the State pension and the very likely increase in the age at which individuals may avail of it, the issue of pension adequacy for those in employment is even more important if they are hoping for financial security in retirement.”

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