Pension proposals are very welcome

THOUGH it can be difficult to get a person of a certain age to discuss pension provision, it is far, far easier to do that than face old age without one that might support a lifestyle other than the genteel poverty faced by many of today’s pensioners.

That discussion is sometimes difficult because the very people who should be considering building a pension pot are forced to put an inordinate proportion of their resources towards trying to house themselves and maybe a young family. Many will also be reluctant to trust the financial sector because they saw older relatives’ pension investments disappear without any consequences for those who managed their funds and are again posting significant profits.

Pensions are a dividing line and a cause of considerable friction. Private sector workers look askance at the investment-to-return ratio and security enjoyed by their peers in the public sector. Therefore, the decision by Minister for Social Protection Leo Varadkar to introduce equity in this area is welcome. He has suggested that a scheme like the Personal Future Savings Accounts mandatory in many countries might be up and running in a few years. That would be welcome, but a universal scheme run by the State where the ratio of return to investment would the same for everyone would be even more welcome. Pensions are too important to be a glorified bet and a source of profits for an irresponsible financial services sector.