Pensions issue must be kept firmly in the public spotlight, says Coughlan

THE high profile achieved by the pensions issue was welcomed yesterday by Minister for Social Community and Family Affairs Mary Coughlan.

At the formal launch of the €500,000 pensions awareness campaign, she said the continuing challenge will be to maintain this profile and to ensure it translates into increased pensions coverage.

Sceptics doubt it will, but the minister is optimistic the goals set by the Pensions Board to get up to 70% of the working population on to a private pension would be achieved over time.

Providing for older people remains a priority for this Government. Since 1997 the basic pension cover has been increased by 60%.

There have also been very significant changes to the Free Schemes which have seen them made available on a universal basis to those over 70 years of age. As a result, we have seen big improvements in the numbers of pensioners experiencing consistent poverty.

“The Government has set new targets for provisioning for old age that it aims to achieve by the year 2007”, she said.

Ms Coughlan added the reality still remains that if people are to enjoy their old age with some modicum of financial security, much needs to be done by the individuals themselves.

“The Pensions Board in its report on the National Pensions Policy Initiative estimated that up to 70% of workers need additional pensions cover in addition to the social welfare pension, if they are to maintain their pre-retirement standard of living.

“At present, approximately 50% of workers have coverage. The target of 70% is ambitious, but it is one which we aim to achieve.

“Retirement today only marks a change in lifestyle, not an end to a productive life, as was too often the case in the past.

“With people living longer, healthier lives retirement years have become active and rewarding. It is incumbent to prepare for that time in our lives”, she said.

The minister welcomed the number of players who have entered the market since the start of the year and she hoped the commitment of the suppliers would be matched by a positive response from citizens who need to look carefully at the financial implications of retirement.