Pension must be linked to the average wage

THE PDs plan to increase the State pension to €300 if they are returned to power.

But if the Tánaiste really wants to reward pensioners for the contribution they have made to our economic success and to ensuring they are financially equipped to live in dignity, he must seriously look at index-linking the State pension to the average industrial wage.

Age Action wants the State pension to be index-linked and to reach 50% of the average industrial wage by 2016. Currently it is just above 33%.

The failings of the current practice of setting a target figure and then achieving it after five years are being experienced by one-third of pensioners today.

They are on the €200 non-contributory pension. This was a target set by the Government in 2002. When it was reached in the last budget, there was much back-slapping among Government TDs.

However, this left non-contributory pensioners €3.55 below the poverty line. It should be a matter of national shame that we have one of the lowest pension spends in Europe. The fact that more than 80% of older people depend on the State pension as their main source of retirement income means pensions will be a key election issue.

With 17% of the electorate over 65, every party with ambitions to form the next government will have to address the issue as a matter of priority.

Eamon Timmins

Head of Advocacy and Communications

Age Action

30/31 Camden Street

Dublin 2.