Clueless about money - Irish consumers demand more advice on dealing with pensions and finances

2nd November 2008

• 72% say they need independent and unbiased financial advice
• Men better than women when it comes to pensions knowledge
• Almost 4 in 10 say they do little or no planning for retirement

Consumers in Ireland say they are clueless about money and pensions and are in dire need of advice, support and education about budgeting, pensions, personal finance matters according to a new survey of consumers by one of Ireland's leading pensions and investment companies, Hibernian Life & Pensions. The Hibernian survey of almost 1,000 consumers in Ireland has found that 72% of respondents say they need independent and unbiased financial advice and almost 40% of consumers have said they wish someone else would sort out their financial planning.

Hibernian's survey of almost 1,000 people in Ireland shows that retirement planning is one of the areas where advice is needed most as 42% of respondents have said that planning for retirement is too complicated and 31% have said they don't understand pensions at all.

The Hibernian research also reveals that men know more than women when it comes to pensions knowledge. 39% of females say they do not know anything about pensions compared to just 24% of male respondents. This statistic is also borne out in Government statistics which show that the levels of pension coverage among women is much lower than it is among men. With the Revenue's pay and file deadline of 17th November fast approaching, pensions are particularly relevant at this time of year for those who want to reduce their tax bill through pension contributions.

To help consumers overcome their pensions blind spot, Hibernian Life & Pensions has launched a special, jargon free, no-nonsense guide to pensions called ‘Pensions Made Simple'. The guide, which contains absolutely no product sales information, is designed to explain pensions in a way that everyone can understand and is available on www.hibernian.ie or from your financial adviser.

Commenting on the new guide, Mark Reilly, of Hibernian Life & Pensions said: "Pensions Made Simple is a jargon free guide that cuts through all the technical terminology to help consumers decide how they should go about making their retirement plans. It explains in plain English the importance of saving for retirement, the tax benefits of investing in a pension and choosing a pension plan that is right for you".

One reason for the lack of pensions knowledge is the fact that many people (31%) find pensions and investments boring. The Hibernian research also reveals that women are more bored by pensions than men with 33% of females and 29% of males agreeing that financial services are boring.

Hibernian's Mark Reilly said: "Pensions may not be very glamorous or exciting but they are urgently important to your future financial security. To at least maintain your current standard of living at retirement it is absolutely necessary to invest in a pension and make sure your contributions are sufficient to meet your retirement expectations. If not you will have just the state pension of Euro223.30 per week to live on or the equivalent of about Euro12,000 per year to cover all living expenses including food, health, light and heat, clothing and more".

Pension investors are also rewarded with generous tax relief on their pension contributions. This is particularly relevant for self-employed pension savers who must pay and file their tax returns online by the 17th November to maximise the tax benefits of investing in a pension. "This means those who do not contribute to a pension miss out on the significant tax relief on pension contributions. So as boring or unglamorous as pensions may be, they are among the most tax efficient investments out there," said Hibernian's Mark Reilly.

A copy of Pensions Made Simple is available from the Hibernian Group website, www.hibernian.ie, from your financial adviser or from any one of Hibernian's 27 branches located throughout the country.

Media enquiries

Alan Tyrrell
+ 353 1 898 5452

Note to editors

• Research carried out by ESOMAR accredited fieldwork agencies and included a total population of 28,525 people across Aviva’s markets including Ireland. The Irish sample base was 997 respondents.
• Hibernian is one of Ireland's largest and most successful financial organisations with activities spanning general insurance, risk management, pensions, life assurance, health insurance and personal financial services.
• Hibernian is owned by Aviva plc, the world’s fifth largest insurance group.
• Hibernian’s full year results for the year ended 31st December 2007 produced an operating profit of €352.9m (2006: €188.9m).
• Hibernian occupies the number one position in the General Insurance market and a top three position in Life & Pensions and Health Insurance.

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