Cost of a pension - One fund for all workers

YESTERDAY’S figures from the Irish Association of Pension Funds will be a cause of concern for anyone who will have to depend on a private pension. They will be of no consequence to public sector employees.

The association says that a 25-year-old opening a defined contribution pension and paying 10% of salary a month would have to work for another half century — 50 years — for a pension of 50% of salary.

These are startling figures and show that private sector employees more and more resemble disposable labour units rather than people who are part of an economic process entitled to expect a degree of comfort in retirement — a principle enshrined in public sector pensions.

The time has come, when the national debt is €37 billion and our pension reserve is €63bn, to begin to establish a national, a universal, call it what you will, pension scheme for all workers.

This is essential for equity and peace of mind for thousands of workers, who, because they fund public sector pensions, should be entitled to similar benefits.