75% private sector workers 'without adequate pensions’

The Irish Pensions Board has reportedly warned that three quarters of Irish private sector workers do not have adequate pension savings.

Reports this morning said the board, in a briefing for Social Affairs Minister Seamus Brennan, had stated that an extra €6.6bn needed to be put into pension plans every year to address the savings shortfall.

The briefing said just 52% of private sector workers had retirement plans.

The Government’s efforts to increase this figure through the establishment of Personal Retirement Savings Account have also been largely unsuccessful, with just 37,000 people opening such accounts.

This morning’s reports said Mr Brennan was considering two options in an effort to boost pension coverage in the private sector.

One is the development of tax breaks and campaigns to encourage workers to take out pensions, while the other is an expansion of the mandatory system through increased PRSI.

Mr Brennan appears to favour the former option, saying the latter would be difficult as workers would perceive any rise in PRSI as a tax increase.