The so-called “golden years” of retirement will be a battle to make ends meet for tens of thousands.
Shocking new figures show Ireland remains in the grip of a pensions timebomb.
Just under six out of ten Irish workers have some sort of pension to supplement the State’s PRSI pension.
That means more than four out of ten will have to rely on the State (Contributory) Pension of just €248.30 a week when they stop work.
With more new home owners opting for 34 year mortgages, those without their own pension may face hardship in retirement.
The Central Statistics Office (CSO) research shows that just over half of all workers ( 50.4%) are actively saving for retirement through a work or personal pension.
That’s a slight improvement on the 47.1% pension savers recorded in 2018.
Among those who have no pension, more than half stated their employer did not provide one.
The Irish Congress of Trade Unions (ICTU) has called for radical reform of Government pension policies.
“As the State pension is paid at a flat-rate, rather than earnings-related, workers without retirement savings are exposed to a significant drop in their living standards in old age,” said ICTU’s Dr Laura Bambrick.
Among those who have no pension, a third said they simply had “not got around” to putting one in place.
But another third said they can not afford the additional living expense.
The Government say they will launch an “auto- enrolment” pension scheme sometime in 2022.
Under the proposed scheme all workers aged between 23 and 60 years earning more than €20,000 a year will be automatically enrolled in a pension scheme when they start a job.
They will make contributions equal to 1.5% of salary, rising to 6% after ten years in work.
Employers will have to make matching payments.
The proposals have still not been formally approved by cabinet.
ICTU General Secretary Patricia King said: “The CSO figures reaffirm the already strong case for auto-enrolment.”
“Congress is calling on Government to ensure that it meets the ambitious deadlines for its introduction,” Ms King added.
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