Radical pensions market shakeup on the way

A MAJOR shakeup in the Irish pensions market is on the way.

It will involve the Mercer group selling pensions in the Irish market in a joint venture with a third party. Details of the deal will be announced later today.

Meanwhile, business consultancy group Hewitt Bacon & Woodrow has called for more debate on the pensions question.

Senior consultants in the group’s Dublin office Philip Shier and Rachel Ingle say Personal Retirement Savings Accounts may not bring the results wanted by either the Government or the market.

Ms Ingle also raised questions about the move towards defined contributions. She and Mr Shier said much more debate was required.

“There is no doubt the message will have to be got across that people will have to save more if they are to have a better pension package when they retire,” she said.

However, the consultancy group, which is currently expanding in Ireland, said the final word has not been heard on the issue of saving for retirement.

Ms Ingle said most defined contribution plans are still young and she cautioned that the “ability of those plans to deliver” reasonable retirement income has not been tested.

A major education programme is needed to hammer home to people the importance of saving enough for their retirement, the consultants said.