For many years, the focus of retirement policy in Ireland has been on increasing pension participation. While considerable progress has been made, having a pension does not necessarily mean being financially prepared for retirement.
Recent research by the Financial Planning Standards Board Ireland FPSB, “The New Retirement Reality”, highlighted this challenge, with almost eight in ten employees saying they do not feel financially prepared for retirement.
The Prime Retirement Index© is a retirement savings benchmark that compares accumulated retirement assets with salary and age-related milestones. It provides a starting point for understanding retirement readiness and identifying potential savings gaps.
At Nelson Life, we are leading pension advisors and are excited to incorporate the Prime Retirement Index© into our pension planning process;
At or above your milestone. A positive starting point, but circumstances change. Regular reviews can help keep your retirement plans on track.
Below your milestone. This should act as a prompt to take a closer look at your pension funding. Identifying a potential gap early gives you more time to explore your options and take action with a CFP® professional pension advisor at Nelson Life.
Who is behind it
Developed by GEM Strategic in collaboration with FPSB Ireland, which licenses the PRI in Ireland. GEM reviews the methodology and assumptions annually.
What counts towards your score
All your pensions: workplace pensions, PRSAs, AVCs, personal pensions, buy-out bonds and My Future Fund. For PRI purposes, a defined benefit pension is valued at 25 times its expected annual pension.
Check where you stand in a minute
Add up all your retirement savings
Divide by your yearly salary. That’s your PRI score.
Compare it with the milestone for your age.
e.g., For a person aged 45 with €90,000.00 saved / (divided by) €60,000.00 salary 1.5x
Based upon the Prime Retirement Index© you should be at (or above) the 3x milestone at age 45.
Therefore, you are below your milestone (50% of your milestone for your age).
Retirement readiness isn’t a once-off calculation. Whatever your PRI score today, regular reviews can help you stay informed, adapt to changing circumstances and make decisions about your financial future. Discuss your results with your CFP® professional adviser, pension consultant or financial adviser.
Prime Retirement Index© is a general educational benchmark, not personal financial, pension, tax or investment advice. It does not assess individual retirement needs or circumstances, and
achieving a PRI milestone does not guarantee retirement income adequacy. Illustrations are hypothetical; individual outcomes will vary. Full methodology is available in the PRI white paper.