SFA opposes mandatory pension system proposal

The Small Firms Association (SFA) has rejected the idea of a mandatory pension system in Ireland.

In its submission to the Department of Social Protection working group, charged with creating a roadmap for universal pensions, the Ibec-affiliated small business lobby group has stated that while it recognises the importance of the Government’s ambition to build a sustainable pensions system for the future, it is fundamentally opposed to any move towards a mandatory Universal Retirement Savings System.

“It is clear that the current pension provision needs to be enhanced to meet the demands of future retirees but we are by no means convinced that mandatory pension provision is the best option.

“Mandatory pension provision will prove costly to employees, to business and to the Exchequer, without any associated benefits in the long term,” commented SFA director, Patricia Callan.

“As such, the willingness of both employees and employers to accept compulsory pension savings is seriously questionable,” she added.