Taoiseach: Review will ensure quality pensions for younger workers

The Taoiseach also denied the recommendation of the commission – that any rise in the pension age should begin in 2028 – was 'short-termism'

Taoiseach Michael Martin said there were 'no easy solutions' to the shortfall in the pensions system, which will hit more than €20bn a year within 50 years.

The Taoiseach says the Government's review of the Pensions Commission will ensure younger workers will be able to avail of quality pensions.

Speaking to reporters in Belfast on Friday, Micheál Martin said the publication of the Pensions Commission report showed a "challenge" for the entire political system. Mr Martin said there were "no easy solutions" to the shortfall in the pensions system, which will hit more than €20bn a year within 50 years.

The whole purpose of the pension fund review was to identify ways that we can create a sustainable pension situation into the future and that we will do. The idea is to create opportunities for younger workers that they can look forward to a quality pension."

Mr Martin denied the recommendation of the commission – that any rise in the pension age should begin in 2028 – was "short-termism".

"This is a recommendation from the pension review body. In fact, I met with the body some weeks back just to get their thinking and their rationale. They're of the view that we need to work with society and bring society with us in respect of a broad range of measures that will be required to give sustainability to our pensions into the future."

He said the Government will have an implementation plan for an overhaul of pensions in March next year.

Mr Martin was part of the Government that established the National Pension Reserve Fund, but did not say if he regrets the raiding of the fund to pay for the bailout and then establish the Ireland Strategic Investment Fund (ISIF). Mr Martin also did not say whether Tuesday's budget would see the establishment of a similar fund to begin the process of buttressing the pensions system.

Speaking in Dublin on Thursday, Social Protection Minister Heather Humphreys said the social insurance fund had a shortfall of €2.3bn in 2020 but that this will be €21bn by 2070.