So the talk down the pub these evenings is ‘Do I need a pension”,

For example if you take home €350 a week and the state pension is €243 per week. Well in this case a 30pc drop in income from €350 to €243 when you retire wouldn’t be that bad. Unfortunately, you are making a huge assumption, which is that the State pension will still be worth over 70pc of your income when you retire.

Firstly, your income may be subject to annual increases and you may be promoted which could increase the difference.

Secondly, our population is ageing relatively quickly which means in future years we will have more people in retirement and less people in the workforce.

This will put pressure on State funds to meet its pension requirements, according to Irish Association of Pension Funds CEO Jerry Moriarty.

We have seen increases in pension payments in the last couple of years, but there is a real possibility that future governments may, out of necessity, reduce this payment or may allow its value to eroded by inflation.

All of this means that you cannot count on the State pension to be 70pc of your current income in retirement in 23 years. You should consider taking out a small supplementary pension if you can afford it.