Properly funded pension scheme is vital

TWO stories made the headlines recently, which were strongly linked.

First we were told that an EU survey found that 27% of Irish respondents found it more difficult to afford long-term care for family members. The older the respondent, the more likely they were to feel it had become harder to afford general healthcare and long-term care for themselves or their family.

Separately, we learnt from the Pensions Board that three-quarters of defined benefit pension schemes in Ireland are in deficit. The link? The state pension. All of us need certainty for the future – especially when it comes to income. Judging by the performance of pension funds in recent years as well as shares, property and other forms of investment, there is little certainty when it comes to retirement income.

If we are to keep people out of poverty when they retire and give them some certainty when it comes to income, we need a properly funded state pension scheme. This pension must be sufficient to enable pensioners to live with dignity. In the light of what we learned last week, this point must be highlighted as the Government plans for Budget 2011.

Eamon Timmins

Head of Advocacy and Communications

Age Action

30/31 Lower Camden Street

Dublin 2