THE NUMBER OF people paying into a pension has increased by 17% since last year, but just two in five are sure that their pension will provide a good standard of living in retirement.

The new figures published by the Competition and Consumer Protection Commission (CCPC) reveal that confidence in retirement outcomes is low.

Only one in three people now paying into a pension are confident their savings will keep pace with inflation.

Additionally, a significant gender gap exists, as nearly a quarter of women (24%) have no retirement arrangements in place, compared with 17% of men.

Fewer women say they understand pensions (49% versus 63% of men), and women are more likely to lack confidence in the standard of living they will have in retirement.

The auto-enrolment scheme, titled My Future Fund, commenced at the start of this year.

Anyone aged between 23 and 60, earning over €20,000 a year, and was an employee without pension contributions being paid through payroll, was automatically signed up to it.

Gráinne Griffin, the CCPC’s director of financial education, is encouraging people to review their pension and, if needed, ask for help.

“Pension statements can be long, complicated and hard to understand so it’s very easy to just avoid them,” she said.

“But you don’t need to become an expert. Book a short review with a financial planner or a financial advisor to check that your pension arrangements are suitable for both your current budget and your future hopes and dreams.”

Most consumers (63%) have never had a one-to-one conversation with a financial adviser about retirement, according to the CCPC.

Among those who sought advice, around a third did so through their employer.

The research also found a low level of understanding of pension fees and charges among private pension holders, with a quarter reporting limited knowledge, and 6% unaware there were any charges associated with their pension at all.

Employees seem to be more likely to contribute higher amounts to their pension if their employer is matching it.

By the end of August, over 800,000 participants were part of the new auto-enrolment scheme.

Retirement savings of over €550 million have been invested on behalf of participants, according to the National Automatic Enrolment Retirement Savings Authority (NAERSA).