PENSIONS BOARD LAUNCHES NATIONAL PENSIONS ACTION WEEK 2007
‘44% of all adults think that a pension should be started before the age of 25’
Monday 5 March 2007: In the Government Press Centre, today, the Minister for Social and Family Affairs, Seamus Brennan, TD, announced details of National Pensions Action Week 2007, which will take place from 12th – 18th of March. The week with a different theme for each day will involve an intensive advertising and promotional campaign focused on the key age target of 25 – 35 year olds. Activity will include on-the-street promotional activity, outdoor, ambient and online advertising, national print advertising, regional and national radio and TV advertising.
Research commissioned by the Pensions Board (conducted by Red C 2007) shows that overall 44% of all adults surveyed think that a pension should be started before the age of 25, although the latest CSO statistics show that only 27.5% of those under the age of 25 actually have a pension. Currently 61.8% of the adult Irish workforce over the age of 30, have a pension (CSO Dec 2006). The target recommended by the Pensions Board is for this to reach 70%.
Speaking at the launch of Pensions Action Week, Brendan Kennedy, Chief Executive, Pensions Board said: “The key aim of Pensions Action Week is to focus the attention of consumers on the issue of pensions. It is crucially important that people in Ireland start to think about how they will manage in their retirement. Four out of every five people who do not have a pension believe that the state pension would not be sufficient if they retire this year, so clearly they need to address this situation.”
Over the next two months the remaining SSIA accounts mature and in excess of 500,000 people will share in the over €7billion payout. A very encouraging outcome of the SSIA scheme is that nearly 45% are young first time savers under the age of 40. Continuation of this savings habit post SSIA could provide a significant boost to pension coverage if these young savers can be directed towards pension take up.
Speaking about Pensions Action Week, Tiarnan O Mahoney, Chairperson of the Pensions Board said: “With so many people receiving their SSIA savings this year, now is an excellent time to start a pension. One in four of those without a pension have an SSIA and I would encourage them to take positive action by using some or all of their SSIA savings to start a pension and to avail of the associated tax benefits and incentives.”
The Pensions Board advice during Pensions Action Week is to stop putting it off and start your pension. So talk to your employer, pick up the phone to a provider, talk to a parent or friend about pensions and check out the online Pension calculator or the SSIA calculators on www.pensionsboard.ie .
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Media Queries:
Mary Hutch
Head of Information and Training
The Pensions Board
Tel: (01) 6131900
David Malone
Project Manager- National Pensions Action Campaign
The Pensions Board
Tel: (01) 6131900
Jackie Gallagher / Mark Leech Q4 PR Tel: (01) 4751444
087-237 1838
087-9053679
Notes:
About the Pensions Board
The Pensions Board is the statutory body set up to regulate occupational pension schemes and PRSAs and to advise the Minister for Social and Family Affairs, and through him, the Government, on overall pension policy development.
Pension Information
The information Unit at the Pensions Board provides a wide range of pension information booklets free of charge and can be reached at the LoCall number 1890-65-65-65 and on www.pensionsboard.ie.
Tax Relief:
Contributions paid to a pension scheme will benefit from income tax relief at your highest rate of tax.
Tax Relief Example: If you contribute € 100 per week to your pension and you pay tax at the higher rate (i.e. 41%), the net cost to you works out at € 59 per week.
Additional Relief: Contributions will also be relieved from PRSI and the Health levy, if you pay these charges.
Take Action -Visit the online Pensions Calculator at
www.pensionsboard.ie
SSIA Incentive
The 2006 Finance Act provides a special incentive to the lower paid to reinvest all or part of their SSIA proceeds after maturity into an approved pension product. For every €3 of SSIA proceeds reinvested by an eligible SSIA holder in a pension product, the Exchequer will contribute €1 by way of a tax credit. Further information on this incentive is available on www.revenue.ie .
National Pensions Awareness Campaign 2007
National Pensions Action Week 2007 is set to take place from Monday 12th – Sunday 18th March 2007.
Each day will have a theme as follows;
Monday 12th March – Pensions in the Workplace Day
We are encouraging employers and organisation to hold a pensions information event in the workplace.
Tuesday 13th March – SSIA Day
There are 48 days left to go to the end of the SSIA scheme and over that time some 500,000 people will share in a €7billion payout of SSIA funds. We are encouraging those that do not have a pension to start one. For those with a pension we are encouraging them to look at increasing the contributions to their pension.
Wednesday 14th March – National Pensions Sign Up Day
We will hand out pension “Time for Action” flyers in key locations in all cities and major towns around the country promoting the pensions message. We are calling on Providers to place a major emphasis on this day to target potential customers that have been “putting off” starting a pension.
Thursday 15th March – Women and Pensions Day
The Pensions Board in co-operation with the National Women’s Council of Ireland will hold a breakfast briefing in the Avoca Café on Suffolk Street to promote the importance of pension provision for women.
Friday 16th March – International Pensions Day
The Pensions Board will launch its updated Pensions Checklist and Pensions Calculator which are interactive and available in eight languages on the Board’s website. The Pensions Board has established relationships with organisations such as FAS, Failte Ireland, and the National Recruitment Federation to help communicate the pension message within this sector.
Saturday 17th March – Young Pensioners Day
The Pensions Board will host a major competition for young people to win tickets to Oxygen Music Festival over the weekend schedule on radio 2FM. The emphasis is to drive traffic to the pension calculator on the website.
Sunday 18th March – Pension Adequacy Day
The Pensions Board will promote media coverage in the press and radio to cover the issues relating to adequacy.
Advertising Activity
National Pensions Action Week involves an intensified advertising and promotional focus on the key age targets of 25 – 35. The activity includes on-the-street promotional activity, outdoor, ambient and online advertising, national print advertising, regional and national radio and TV and cinema advertising.
Media supplements
An extensive media supplement will appear in the Irish Times on Monday 12th March to mark “Pensions in the Workplace Day”.
On Tuesday 13th a media supplement will appear in the Star newspaper to highlight SSIA Day.
Radio & Press Interviews
The Pensions Board will carry out a nationwide series of local and national radio and press interviews leading up to, during and following National Pensions Action week.
Competitions
A competition will run on the Pensions Calculator section of the Board’s website throughout the week. Competitions will also be hosted over the course of the week on Tom Dunne’s Pet Sounds Show on Today FM and over the RTE 2FM St Patrick’s weekend schedule.
Ad mobiles
A National Pensions Action Campaign 48 sheet Admobile will be on display at all the major GAA, Soccer and Rugby fixtures in Croke Park and at the major Music Festivals throughout the summer months.
Background to 2007 Campaign
• The 2007 National Pensions Awareness Campaign message will be “Now is the time to take Pensions Action”
• CSO figures identify specific sectors with low levels of pension penetration – PR Strategy will focus on driving action in these specific sectors, particularly 25 – 35 year olds.
• Budget of € 1,000,000 is available for NPAC activity in 2007.
• The maturing of the majority of SSIAs during 2007 is a major opportunity to encourage greater take-up of pensions and to address pension adequacy.
NPAC Objectives 2007
• The primary objective of the campaign in 2007 is to drive action by those with no pension and to ensure those with pension provision address the adequacy of that provision.
• A related objective is to encourage SSIA holders to make pension provision a priority this year.
Key Target Sectors
Population aged 25 – 35 years old – a key target for the Pensions Board, as it is critical that workers start their pension early in their working life in order to ensure they have adequate provision for their retirement
Women – the female population has traditionally lower pension coverage than the male population and so is a key target sector for the Pensions Board
Young People / Graduates – it is important that the pension’s message reaches people before they start their first job.
Hospitality/Farming / Rural Community – The lowest levels of pensions coverage are in the Hospitality and Agri-sectors, which makes building positive pensions awareness within these communities a key target of NPAC 2007.
International Workers – As more and more inward migration takes place in Ireland, a high percentage of the migrant workers do not have a pension.
The Facts
• Only 61.8 % of the adult Irish workforce over 30 years of age
• Only 58.3% of men in the Irish workforce
• Only 50.6% of women in the Irish workforce
• Less than 25% of those working in
• the agricultural industries including farming
• working seasonal & part-time
• working in the catering & tourism industries
….…have private pensions (Source: CSO Survey Dec 2006)