Ireland may face pensions crisis in future, warns ESRI

Ireland could face a pensions crisis in the future as the average life expectancy rises, it emerged today.

New figures have revealed the length of time men and women can expect to live has risen rapidly over the last six years.

Life expectancy improved by 2.1 years to 75.1 for males and 1.8 years to 80.3 for females between 1996 and 2002.

Today Danny McCoy of the Economic Social Research Institute said the state’s pensions system would not be able to cope with an increase in the amount of time people live after retirement.

“This is coming down the line in the coming decades,” the economist said.

“Pensions could be dramatically under-funded if there are more retirement years than previously envisaged.

“They will not be able to cover their commitments.”

Mr McCoy said the increase in the average life expectancy would mean the national retirement age will eventually have to be increased.

Despite the advances, Irish life expectancy continues to be below the EU average for both sexes, the report revealed.

Mr McCoy said Irish people still die younger than residents of most other established EU states.

“We retire older but die younger,” he added.