Irish Examiner View: Need for greater urgency on pension reform

If individuals are reluctant to act on their pension, it is high time the Government did.

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One third of the working population in Ireland aged between 20 and 69 continue to have no pension coverage outside of the State pension, according to new figures from the CSO. That is a concern not just for the individuals involved, but for the future of the nation as a whole.

Over the next 30 years, our population over the age of 65 is set to more than double from 22% of the adult population to 47%. That will mean fewer paid workers to provide for the needs of those in retirement.

The merits of investing in a contributory pension scheme either as an employee or as a self-employed person are obvious because substantial tax relief can be achieved. For example, someone on an income of €50,000 a year can accumulate €5,000 in a pension fund at a cost of only €1,500.

If individuals are reluctant to act, it is high time the Government did. We are still awaiting the long-promised system of auto-enrolment, which would see people without a private pension enrolled into some form of scheme. That already happens in the UK, Australia, and New Zealand, among other countries. It has been talked about here for two decades and is part of the “pensions roadmap” announced almost four years ago. 

There needs to be a greater sense of urgency if we are not to suffer a pensions timebomb.

It is time to make major change a reality. Otherwise, future generations will pay dearly.