The CSO has today published an update to its older persons information hub,which provides a snapshot into the lives of older people in Ireland.
There were 131,400 people aged 65 years and over in employment in Quarter 2 in 2025 – from April to June – compared to 103,900 in Quarter 2 in 2021,which marks a 26pc increase.meanwhile, the population of people aged 85 years and over is projected to more than triple by 2057, increasing from an estimated 104,300 in 2027 to 389,400 in 2057.
The report also shows how more than one in ten (11pc) of those aged 75 years and over reported experiencing discrimination in the past two years, compared to almost three in ten (29pc) people aged between 25 and 34 years.
Simultaneously occurring, three in five people (59.9pc) aged 75 years and over walked to get to and from places at least three days a week last year, while 85.2pc of those aged between 18 and 24 years did so.The statistics suggest that the old age dependency ratio – expressing the population aged 65 years and over as a percentage of the population aged between 15 and 64 – is set to increase from 25pc in 2027 to 49.8pc in 2057.
Though, almost one in three (32.3pc) of people aged 65 years and over considered their overall life satisfaction to be high,compared to a quarter (24.7pc) of those aged between 25 and 49 years old.
Rising Debt Levels pose Retirement Risk for Irish Homeowners
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Recent analysis highlights a growing concern: an increasing number of Irish homeowners may face the prospect of continuing mortgage repayments well into their retirement years. This trend raises the risk of financial hardship for retirees and could exacerbate existing poverty rates among seniors.
The Growing Burden of Mortgage Debt in Retirement
Ideally, individuals aim to be mortgage-free by the time they retire, allowing them to live comfortably on their pensions. However, this is becoming increasingly challenging for many. The combination of rising house prices, longer mortgage terms, and economic pressures means some individuals are struggling to manage their finances after ceasing employment.
According to recent data, almost one in ten (8.8%) of retired people in Ireland are already at risk of poverty. This figure is highly likely to increase if more retirees are burdened with ongoing mortgage debt. https://www.rte.ie/news/economy/2024/0208/1427441-retirement-income-adequacy/ (RTE news report on retirement income adequacy in Ireland)
Balancing mortgage Payments and Pension Access
Financial advisors are urging caution regarding early access to pension funds to pay off mortgages. Fiona McMahon, a senior mortgage advisor at NFP Ireland, advises that if mortgage repayments are manageable, continuing to pay them off is frequently enough preferable to drawing down on pension savings.”While being mortgage-free may sound appealing, the short-term benefit could be outweighed by the long-term value of a larger pension fund when you retire,” McMahon explained. Reducing your pension pot early can substantially impact your future income and financial security.
The Importance of long-Term Financial Planning
This situation underscores the importance of proactive financial planning. Several factors contribute to the risk of carrying mortgage debt into retirement:
Longer Mortgage Terms: While offering lower monthly repayments, longer mortgage terms mean a longer period of debt and possibly higher overall interest paid.
House Price Inflation: Rapidly increasing house prices necessitate larger mortgages, making it harder to pay them off before retirement.
Insufficient Pension Savings: Inadequate pension contributions throughout a working life can limit financial versatility in retirement. Unexpected Financial Shocks: Job loss, illness, or other unforeseen circumstances can disrupt financial plans and make mortgage repayment more difficult.
Resources and Advice
Several resources are available to help homeowners plan for a secure retirement:
The Money Advice and Budgeting Service (MABS): Provides free,confidential,and self-reliant advice on managing debt and finances. https://www.mabs.ie/
The Pensions Authority: Offers information and guidance on pension planning in Ireland. https://www.pensionsauthority.ie/
Financial Brokers: Can provide personalized advice on mortgage options and pension planning.
Disclaimer: I am an AI chatbot and cannot provide financial advice. This information is for general knowledge and informational purposes only,and does not constitute investment advice. It is indeed essential to consult with a qualified financial advisor for personalized guidance.*