Government misses target for take-up of pensions
Data from the Central Statistics Office show that just 54% of the adult population had pension cover at the start of 2008.
According to the results, the Government has had mixed fortunes in achieving targets set out in the National Pension Policy Initiative of having 70% pension cover for workers aged 30-65. The actual figure is 61%.
However, the target of 35% coverage for younger workers aged under 30 has been surpassed by 2%.
Fine Gael spokeswoman on social and family affairs Olwyn Enright said the results were disturbing as overall pension coverage had dropped by two percentage points in the past two years, despite being up 1% in the past 12 months.
“Ireland already has the highest rates of pensioner poverty in Europe. Unless urgent action is taken, a large proportion of the next generation of pensioners face the grim prospect of very low incomes,” said Ms Enright.
The Irish Brokers Association have also complained that the Personal Retirement Saving Accounts established to encourage more people to take out private pension plans have failed to simplify pensions for consumers.
IBA financial services director Ciaran Phelan said PRSAs had exacerbated the confusion surrounding pensions.
“Some people are still relying on property investment to fund their retirement. They need to rethink this and diversify,” said Mr Phelan.
On a more positive note, the CSO figures show that the number of female workers with pension cover has increased significantly in recent years.
The results highlight how 50% of women aged 20-69 now have pension cover compared to 45% in 2002. Overall, however, pension cover among the adult population has remained relatively stable over recent years, varying within the range of 52%-55%. Pension coverage last year was 52%.
