Pensions coming under scrutiny

MORE flexible ways of dealing with retirement are being examined by the Government, the head of the Irish Pensions’ Board, Anne Maher, confirmed yesterday.

But nothing as dramatic as moving the retirement age to 70 which is a major fear of British workers, is being considered, she said.

In Britain prime minister Tony Blair is facing social unrest and the threat of industrial action over expected major changes in pension policy there.

Concerns are growing in Britain that people will have no option but to work longer before retiring.

Part of the problem is that people are living longer than projected at the time their pensions plans were put in place and funding the extra years of old age will be an increasing strain on some pension plans, experts have warned.

Local government workers voted at a conference to defend their pension scheme through strike action if needs be.

While no such plans exists here the Government has bumped up retirement for new public servants from 60 to 65 from this year.

With people living longer than they were expected to when they took out their retirement plans pension funding is set to pose a key challenge to the industry.

This has to be examined due to the fact that people “are going to be living a lot longer”, Ms Maher said.