Govt to publish pension proposals

The Government will publish its proposals today for future changes to the pensions system.

A green paper, or official report intended to pave the way for changes in the law, will map out expected shifts in the age profile and financial needs of the country in the coming decades.

Taoiseach Bertie Ahern, Tánaiste and Finance Minister Brian Cowen, and Social and Family Affairs Minister Martin Cullen will launch the Government discussion document.

The green paper will explore a number of scenarios or options ahead of any planned changes to the pensions system.

It will also explore social welfare, private, occupational and public sector pensions and incentives for supplementary pension saving.

Earlier this week a book, Welfare Policy and Poverty, published by the publicly-funded Combat Poverty Agency, said government policies had brought about a 25% reduction in the number of people living below 50% of the average income between 1998 and 2007.

But in a chapter on older people the organisation called for a recognition of the close link between pensions and poverty.

The agency said 70% of over 65-year-olds were in the bottom two income sections.

Combat Poverty Agency recommends the state pension should be set at 50% of national average earnings but also calls for policies that will help people to stay socially active and remain in the labour market.