MORE THAN A third of people surveyed by Friends First recently revealed they do not have any pension cover.

The life assurance group said that more than half of the 37 per cent without cover are planning to rely on the State pension when they enter retirement.

Some others have not even considered how they will provide for themselves, said the report.

About 59 per cent of those surveyed who do not currently have a pension admitted they could not afford one.

“People have already cut back on the little luxuries in life and now they are cutting back on real necessities, like pensions,” said Simon Hoffman, business development director at Friends First.

Reduced cover

Of those surveyed who do have a pension, more than a quarter have reduced their contributions in the past year with some stopping payments altogether. Some 23 per cent said that the introduction of the Government levy has made them less likely to contribute to their pension pot.

Sales and marketing director at Friends First said it is time the financial services industry addresses the flaws in its business model. He added:

Over the next two eyars, it is likely that there will be no Irish-owned Life Assurance companies operating in the Irish market. New market forces will bring change – we need to look at other markets and ways of doing things better.”

The survey also found that 20 per cent of respondents could not meet all of their monthly financial commitments with many affected by pay cuts and reduced hours.

About 23 per cent of those surveyed have no savings at all, while 76 per cent have cut back on their entertainment and leisure spending.

Read: Government proposes levy on insurance policies – to pay for Quinn bailout>