Pensions ‘time bomb’ will tick until 2009

IT IS likely to be 2009 before the Government takes action to tackle the pensions timebomb — a full four years after it warned “urgent action” was needed.

Social Affairs Minister Martin Cullen has said he doesn’t expect to submit proposals to Cabinet until the end of 2008. That being the case, it would be 2009 before the Government implemented specific policies to address the public’s low pension take-up.

In May 2005, Mr Cullen’s predecessor, Seamus Brennan, warned 900,000 of the estimated national workforce of two million people did not have a private or occupational pension. He said unless “urgent action” was taken many of the 900,000 would have to rely on the basic state pension as their main source of income in retirement. Mr Brennan then asked the Pensions Board to bring forward a review of the situation.