Raising retirement age 'unrealistic'
He said the solution, not just for State pensions, but for individuals who wanted to protect their long-term financial and health needs, lay in coming up with nnovative ways to encourage or require people to face up to the challenge today.
"The recent report on our ageing population prepared by the Society of Actuaries in Ireland is to be welcomed, although it is unfortunate that most coverage of their report highlighted their conclusion that an older retirement age of 70 or 75 represented the most effective way to meet the cost of State pensions.
"The principles of insurance must be invoked in the solution. No single individual could provide for all the liabilities for pension, healthcare and long-term care that might arise during a lifetime. Grouping the risks together and funding on the basis of average experience will, I believe, work in this situation.
"Funds put aside and not used by the individual must benefit others and, of course, rules and regulations relating to customer protection, solvency must apply. This scheme would run alongside and then supersede PRSI, but be a funding rather than a tax system," said Mr Sheridan.
He drew comparison between Ireland and Australia, which has the second-highest private health insurance system in the world.
"Here we have the Department of Health and Children.
"In Australia, they have the Department of Health and Ageing. Our approach my appear more caring, but we do no service to our children if we fail to face up to demographic realities now rather than leave our children to cope with the problems when the grow up.
"The integrated approach I am advocating would require co-ordinated action involving our Department of Finance, Health and Children and Social Welfare," he said.
"A far more inclusive approach to funding for pensions, healthcare and long-term care would have to be phased in, but a start must be made now."
Mr Sheridan, who was speaking at the Cork Chamber of Commerce October business breakfast briefing in association with the Irish Examiner, said the VHI was seeking to change its corporate structure away from that of a statutory body to a structure which will provide far greater commercial freedom.
