McCreevy warns of EU pensions crisis

The EU Commissioner for the Internal Market, Charlie McCreevy has warned that a pensions crisis is looming in the European Union.

Speaking in Dublin, Mr McCreevy said if economic growth does not improve in the EU, this part of the world will fall behind its global competitors.

He said we are caught between the twin pressures of declining birth rate and rising life expectancy.

The former Minister for Finance said that by the year 2050, the average working age population is projected to be 18% smaller than at present.

Mr McCreevy warned that in the next 45 years, the ratio of retired people to working people will double from 24% today, to almost 50% in the year 2050.