Ireland's investment specialists attended seminars held throughout the country this past week. The seminars, hosted by Hibernian Life & Pensions, provided a platform for Ireland's investment experts to discuss pension security in a time of economic uncertainty.
- Ireland's investors advised to protect pension until economic conditions improve
- *54% of retirees regret not starting a pension sooner
Ireland's investment specialists attended seminars held throughout the country this past week. The seminars, hosted by Hibernian Life & Pensions, provided a platform for Ireland's investment experts to discuss pension security in a time of economic uncertainty. During this discussion Hibernian Life & Pensions advised investors not to let the current market turmoil deter retirement planning and to take the necessary steps to protect their pension.
The seminar also revealed some interesting research findings on attitudes to savings and investments among Ireland's investors. *According to Hibernian's research, approximately 60% of people are suffering from high levels of anxiety over retirement and a further 54% of current retirees in Ireland wish they had done something earlier to provide for their retirement.
Commenting on these findings, Hibernian's Michael Gordon, executive manager of investment and funds, said: "Obviously the financial market turmoil is a cause of serious concern for a lot of people and the feedback we received from investment experts during the seminar is that consumers are nervous about investing at the moment because of this turmoil. We at Hibernian believe that when markets are volatile it is important that we engage with investment advisers and specialists by conducting these seminars to share our advice with consumers".
"My recommendation to investors is to adopt a long term perspective when it comes to retirement and pension planning. The financial markets have endured many unhealthy economic stints from the bursting of the technology bubble in 2000 to the short recession following the Gulf War and as far back as the stock market crash in 1929. It will also endure the credit crunch. History has shown us that markets do recover in time so it is important not to let the current stock market volatility deter you from investing in a pension. Investors who freeze their retirement planning are more likely to do more damage to their finances than good, as it will actually cost more to top up your fund in the future than you will save in the short term".
Contributing to a pension is particularly important to self-employed investors as they must file their tax returns by the 31st October and the tax relief offered on pension payments is probably the best tax break available. For cautious investors who want the tax benefits but do not want to invest in a stock market fund just yet, there are deposit-based funds, which offer the security of high interest bank deposits but the flexibility to move into investment funds when the investor is ready. For example, Hibernian's Safe Haven Fund acts as a springboard for investments in the equity and property markets. Offering the security of a high interest deposit account (ECB+1%, currently 5.25%pa) but total flexibility to take funds out of deposit to invest in equity and property markets, the Hibernian Safe Haven Fund is intended as a ‘stepping stone' for new investors looking to ultimately invest in the markets for the medium to long rather than short-term period.
"The Hibernian Safe Haven Fund is ideal for investors who want to continue investing in a pension but are too nervous to invest fully in stock markets in the present climate of market uncertainty. Ultimately the Hibernian Safe Haven Fund delivers peace of mind and prosperity for investors," said Michael Gordon.
For further information on protecting your pensions savings please contact your financial adviser.
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*Research carried out by ESOMAR accredited fieldwork agencies and included a total population of 28,525 people across Aviva's markets including Ireland. The Irish sample base was 997 respondents.
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Note to editors:
- Hibernian is one of Ireland's largest and most successful financial organisations with activities spanning general insurance, risk management, pensions, life assurance, health insurance and personal financial services.
- Hibernian is owned by Aviva plc, the world's fifth largest insurance group.
- Hibernian's full year results for the year ended 31st December 2007 produced an operating profit of €352.9m (2006: €188.9m).
- Hibernian occupies the number one position in the General Insurance market and a top three position in Life & Pensions and Health Insurance.