Just 23% of people say they have a clear plan for their financial future to retirement and beyond, according to new research from PTSB.
The latest edition of PTSB’s Reflecting Ireland research series, conducted by Core Research, focuses on attitudes towards financial planning. It shows that nearly half (48%) of respondents are not confident they will be able to afford the lifestyle they want in retirement.
Interestingly, the research also suggests that people’s commitment to long-term financial planning dips in middle age, just as the importance of it increases.
The age cohort who are least likely to have started a financial plan are 45-54 year olds (39%). This compares with 58% of 18-24 year olds, highlighting the extent of the issue among the middle-aged cohort.
Similarly, the age group who are most likely to say they have no plans to make a long-term financial plan are those aged 55-64 (22%). This compares with just 6% of 18-24 year olds.
The research also points to gaps in financial literacy. More than half of respondents (54%) are unaware of the small gift exemption rule whereby an individual can receive up to €3,000 per calendar year from another person tax-free. However, of those who have made a financial plan, 44% have transferred assets at an early stage.
The research from Reflecting Ireland series will further inform PTSB’s support for our customers in planning for their financial future. As part of our ongoing efforts to encourage Financial Wellbeing, PTSB is holding a Savings and Deposits Week from April 13-17 in our 98 branches across Ireland, where our teams will be ready to sit down with customers to discuss the financial options available to them. Customers can now book a free financial planning appointment.
Meanwhile, over one in two respondents (51%) say they have received or expect to receive an inheritance. According to the research, just over half (53%) of inheritances already received, and those expected in the future, are valued at up to €100,000, with 17% between €100,000 - €250,000, and 11% between €250,000 - €499,000. Just 4% have received or expect to receive in excess of €500,000.
Despite this, reliance levels on inheritance are significant. Almost half (47%) of those expecting inheritance describe themselves as at least fairly reliant on it to achieve long-term financial goals. This is particularly relevant given respondents indicate that the cost of living and affordability is the most pressing concern about growing older in Ireland.
Most people surveyed say that they would use inheritance for savings (45%) and housing-related expenses (35%).
The research also focused on planned bequests, with approximately half (49%) anticipating leaving inheritances of up to €250,000. A smaller, but still meaningful segment of planners (28%) expects to leave inheritances exceeding €250,000.
The findings on inheritance are set against a backdrop of a rise in inheritance tax taken by the State to a reported €968 million in 2025.
Even though women are expected to live longer than men, the research suggests that they lag behind men across all areas of financial planning, as well as regarding confidence in their ability to fund retirement.
For example, four in 10 (42%) female respondents say have started a financial plan for later life, compared with six in 10 (62%) males.
Furthermore, four in 10 (40%) women are confident they will be able to afford the lifestyle they want into retirement, compared with almost six in 10 (57%) men.
Women are also less likely than men to have considered key factors for later life, according to the research. For example:
“Despite some encouraging signs, the research suggests there is much to do to ensure people of all ages are properly considering the financial implications of later life and retirement.
The research shows that inheritance is a key part of many people’s future financial plans, with a significant number who say they are relying on inheritance to achieve long-term financial goals. Over half of inheritances are expected to be under €100,000 while, at the same time, the cost of living and affordability is people’s top concern about growing older in Ireland. This corresponds with the large numbers who say they are not confident they will be able to afford the lifestyle they want in retirement.
Unfortunately, there is a noticeable gender gap identified across this research, in terms of financial planning and confidence for the future. With greater financial awareness and education, including supports such as the small gift €3,000 exemption rule, it could be possible to start to reverse this trend.”
"We are by nature more inclined to focus on the short-term than to plan for our long-term future. It's understandable that so many are worried about the cost of living today and are preoccupied by how to deal with it. However, it is vital that we plan for our long-term financial future, as if we don't, we may lose out in later life. It's a real concern that so many of those aged mid-40s to mid-60s have no long-term financial plan yet, and many have no plans to make one. Any time spent on financial planning during these years will reap benefits later on."
For media queries, please contact ed.micheau@ptsb.ie | 086 803 7155
Editors’ note
The Core online survey of 1,000 adults in the Republic of Ireland took place from January 28 – February 9. The sample was nationally representative of the population.
