Gov launchs consultation process for mandatory pensions

The Government is launching a consultation process for the first step towards mandatory pensions this afternoon.

Minister Regina Doherty is announcing the process for an 'Auto Enrollment Retirement Savings System.'

It could see almost all workers enrolled from 2022 to ensure people working in the private are saving enough for their future.

Donal Keating is a Tax Director with Price Waterhouse Coopers.

He said today's announcement is of most benefit to under 35s: "If you're sitting listening and you're 58 saying I have no pension pot, we don't have a lot of time to rectify this for you.

"However, there's a 28-year-old listening today who in 30 years time, when they're 58, will have a pension pot because of the announcement that Minister Doherty is making today.

"What auto-enrollment is is kind of a system whereby you will automatically be opted into a pension arrangement by 2022 through your employer."