Reliance on state pension hampering sustainability of system

Ireland’s pension system is among the least sustainable of any developed country as a result of our heavy reliance on the state pension, a report has found.

The Melbourne Mercer Global Pension Index, which looked at 25 pension systems across the globe, ranked Ireland’s system 11th overall, but 20th in terms of sustainability, while Denmark retained top spot for the fourth consecutive year.

The key issue is Irish people’s over-reliance on the state pension, which is provided on a pay-as-you-go basis.