Grey evolution of Ireland

30th September 2009

As a country, Ireland’s demographic footprint is changing – people are getting older and are faced with a longer working life than previous generations, says Michael Gordon, investment expert with Hibernian Aviva Life & Pensions.

Hibernian Aviva Life & Pensions research reveals 50% of people are prepared to work past retirement age to fund their retirement and data from the Central Statistics Office (CSO) reveals those aged 65+ will account for one fifth of the population by 2036- in comparison to just 11% in 2001. Furthermore, the number of ‘oldest old’ persons (those aged 80 and over) is projected to more than treble from a 2001 level of 98,000 to about 320,000 in 2030.

Commenting on this grey evolution, Michael Gordon of Hibernian Aviva Life & Pensions said: “These findings reveal the face of Irish society is changing with the ageing of the population. So it is important for pre-retirees talk to a financial adviser about their future financial security and start saving for retirement”.

However, Hibernian Aviva Life & Pensions research also reveals many consumers are putting a freeze on their retirement savings as a result of the economic downturn with 34% of people not regularly setting aside money for when they retire. Michael Gordon said: “The research reveals that consumers are clearly nervous about investing at the moment because of the current financial market turmoil. However by not saving for retirement Ireland’s consumers may be forced to live a very frugal lifestyle with just the state pension of Euro230.30 per week to live on or the equivalent of about Euro12,000 per year”, continues Michael Gordon. 
 
“By talking to a financial adviser and saving for retirement, people can overcome these issues leading to a more balanced and relaxing lifestyle after the normal retirement age of 65”, continues Michael Gordon.

Hibernian Aviva Life & Pensions suggests investors consider euro cost averaging when it comes to retirement planning. “Despite the market turmoil since last September, many pension clients that pay their pension on a monthly basis have been pleasantly surprised to see that they have benefited from what is called Euro Cost Averaging. Essentially by regularly paying into their pension, these clients have bought at a lower price as markets fell and are now benefiting from the strong equity market rally that has occurred since March”, says Michael Gordon of Hibernian Aviva Life & Pensions.
 
For pension investors looking for a smoother investment journey Hibernian Aviva has launched the Aviva Irl BlackRock European Absolute Return Strategies Fund (EARS). “With the Aviva Irl BlackRock European Absolute Return Strategies Fund (EARS) we are helping Ireland’s investors smooth out the bumps in the financial market and avoid the risks associated with making once-off lump sum investments. It is so important that investors realise they can still make money and increase the value of their retirement fund during the recession by making regular investments”.

For further information on the Aviva Irl BlackRock European Absolute Return Strategies Fund (EARS) please contact your financial adviser or stop into any of Hibernian Aviva’s 27 branches.

- Ends –

For further information please contact:

Alan Tyrrell
Group Media Relations Manager
Tel: 01-898 5452

 About Hibernian Aviva

• Hibernian Aviva has been part of Ireland’s insurance industry for the last hundred years and has grown to become one of the largest and most successful organisations in the country with businesses in General Insurance, Life & Pensions and most recently the health insurance sector.
• Part of the world’s fifth largest insurance group Aviva plc, the company has approximately 1.2 million customers in Ireland and offices in Dublin, Cork and Galway with a branch network in 27 other locations.
• Aviva is the world’s fifth largest insurance group, serving 50 million customers across Europe, North America and Asia Pacific. 
• Aviva's main business activities are long-term savings, fund management and general insurance, with worldwide total sales of £51.4 billion and funds under management of £381 billion at 31 December 2008. 
  

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