Government must decide on a scheme

IN a country where only half the working population has a decent pension, the strong hint at a mandatory scheme by Social Affairs Minister Séamus Brennan could not be more timely.

As he put it at the launch of the Pensions Board annual report, mandatory pensions would soon be up for debate because the Government faced some “tough decisions” to ensure a decent retirement income for all.

Pensions cost a lot of money. Around 25% of an individual’s pay would be required over a 40-year span to generate a good one.

The need for a national policy was raised during the social partnership talks. Meanwhile, funding of defined pension schemes remains a cause of concern as 32% of these have yet to come up to scratch.

Clearly, a Government decision on a pension scheme, mandatory or otherwise, is warranted sooner rather than later.