16th October 2000

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Many of Northern Ireland's workers are in for an unpleasant shock when they reach retirement age, according to new research at the University of Ulster. Data from the Life and Times Survey suggests that many people under pensionable age are confused about pensions - and may face poverty when they retire. The survey polled 2200 adults across Northern Ireland, of whom 1695 were under retirement age, asking them about their pension provision and their understanding of the pension system.

Results showed that only a few - just 13% - had given much thought to their post-retirement financial situation. Nevertheless only 7% expected to be badly off, with the majority reckoning they would at least be able to get by.

The survey also uncovered a host of misunderstandings and false assumptions held by Northern Ireland people about pensions in general, including:

¨ Less than half of the self employed have personal pensions and those that do, tend to contribute very low amounts

¨ Many people believe that the state will provide them with adequate benefits if they have paid their tax and national insurance

¨ 89% thought that the basic pension "isn't much for someone who has paid tax and national insurance all their lives"

¨ The least favoured option for state pension provision is the one closest to current government policy

Clearly many people in Northern Ireland who are relying on the State expect to be adequately provided for. But, leading benefits researcher Professor Eileen Evason argues: “As the basic pension continues to decline and the cuts in SERPS take effect from this year, this optimism may prove to be unfounded for many.”

Professor Evason is also very worried about the position of women once they reach retirement. “77% of people believe that the basic state pension is paid to everyone when they retire. This is not true - the basic pension is not a universal pension paid automatically on reaching retirement age. Whether people get the basic pensions - and whether or not they receive a full or reduced pension - depends, in the main, on their contribution records. Women in particular need more information on this. Beyond this, the majority of interviewees (58%) were unable to identify the correct amount of the pension when presented with a list of options and many thought the basic pension for a single pensioner was higher than it is.”

A copy of the Life and Times Research Update on Pensions is available in PDF and word formats from www.ulst.ac.uk/news/pensions

For further information, please contact:

Press Office Department of Communication and Development
Telephone: 028 9036 6178
Email: pressoffice@ulster.ac.uk