Mind the Gap

Mind the gap

If you are hoping to carry your current lifestyle into retirement, it is very important that you contribute to a private pension to allow you to do so. Even if you haven’t started a pension at this stage of your life, you still have plenty of time. The State Pension is currently around €238.301 per week, which won’t leave room for anything but the bare essentials.

A pension gap is how much extra you need to save each year to achieve a comfortable standard of living in retirement. We carried out extensive research last year to find out just how prepared Irish citizens are for retirement and found some pretty startling facts.

Ireland has the third largest pension gap in Europe, with an average pension gap of €12,200 per person, per annum. 39% of those surveyed expect to be struggling financially moving into their retirement, with 51% stating that they really do not feel prepared at all.

Based on the average extra savings needed to provide a retirement income of around 70% of pre-retirement salary, you can use the below as a guide to the amount you should consider saving, per annum, in addition:

  • For a 30 year old – €5,100 per annum.
  • For a 40 year old - €6,700 per annum.
  • For a 50 year old - €9,700 per annum.
  • For a 60 year old - €28,000 per annum.

(Source: Aviva’s Mind the Gap, 20162)

And don’t forget, every euro you pay into your pension plan today is likely to have less spending power in the future due to inflation. This will also add to a pension gap. To alleviate this, you could contribute the same percent of your earnings into your plan every year. This way, if your salary increases to match inflation, you will automatically be putting more money into your plan.

We recommend talking to an independent financial broker (you can use our handy online geo-locator to find the one nearest to you) to figure out how much you should contribute each month to ensure, you meet your individual expectations and are making the right steps towards a comfortable retirement.

The gender pension gap is also something that people must be made aware of in the hopes of closing it. In Ireland, there is a pension gap between men and women of over 30%3. Combine this with the fact there is a gender salary gap of approximately 16%4, and the longer life expectancy of women, this leaves Irish women with smaller pension pools that need to stretch that bit longer on average. It is vital that women understand their pension gap and equip themselves with the knowledge to combat it with their contribution decisions.

Our pension calculator is a useful, friendly and simple tool that generates your estimated pension gap in a few short minutes. It can be the perfect way to start thinking about your pension.

To calculate your pension gap, you will need to input the following information:

  • Your age
  • Your salary
  • How much your pension fund is worth
  • The age you hope to retire

The calculator will also help you to establish how much you need to contribute each month to close your pension gap and will tell you how to contact a financial advisor via phone or email.

For further information on the pension gap, have a look at our infographic. (This links to the ‘Mind the Gap’ infographic on website)

For more information contact your financial broker or call us in Dublin or Galway on 1890 24 22 27.

Aviva Life & Pensions UK Limited, trading as Aviva Life & Pensions Ireland, is authorised by the Prudential Regulation Authority in the UK and is regulated by the Central Bank of Ireland for conduct of business rules. Aviva Life & Pensions UK Limited, trading as Aviva Life & Pensions Ireland, is also regulated in the UK: by the Prudential Regulation Authority for prudential rules and, to a limited extent, by the Financial Conduct Authority for applicable UK conduct rules. Registered Branch Office in Ireland (No 906464) at One Park Place, Hatch Street, Dublin 2. Tel (01) 898 7000. Registered in England (3253947) at Wellington Row, York, YO90 1WR. © 2015 Aviva.




  1. Citizens Information Ireland, 22nd September, 2017.
  2. Aviva Mind The Gap Report, 2016,
  3. Mercer Ireland, 2017.
  4. Morganmckinley.ie 2016.

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