Early retirement scheme needs careful planning
The scheme initially offered retirement at 56 with an annual pension of up to £10,000, for farmers who never contributed to a pension scheme. It was the envy of many other sectors, but the shine has worn off, and the scheme has left a trail of regrets among participants.
The ‘devil’ in the detail proved to be unpleasant medicine. Lack of indexation of entitlements resulted in substantial erosion of the pension. The regulations contained hidden difficulties for many farmers.
Many participants feel that they are worse off financially, and others found the required adjustment in their daily lives difficult to cope with.
The principle of early retirement remains relevant for a viable farming industry. A significant number of farmers are prepared to consider a new scheme to get out at 56, and hand over operation of the land to a younger person. But any new scheme must be planned with more care, with understanding and consideration of all aspects of the changeover. The new ERS must be simpler and more straightforward, making clear to participants what they are signing up for. The pension, now at €13,500 per annum, must be considerably increased to take account of inflation.
There can be no question of farmers thinking they can get a pension, and continue farming almost as before — there has to be a balance between the scheme’s aims and regulations.
