Compulsory pension schemes possible, says minister
Young workers could be forced to pay into compulsory pension schemes in order to provide for their retirement, it was claimed today.
With almost one million people, mainly women, not saving for old age, Minister for Social and Family Affairs Seamus Brennan warned mandatory pension funds could be on the cards.
The minister said he had asked the Pensions Board to look at what changes would be practical, including forcing 20-something workers to set aside a small chunk of their wages.
“If it requires some radical solutions to that like looking at aspects or possibilities of moving towards some form of a mandatory system that is something I know the board are considering,” Mr Brennan said.
“I think we have to think the unthinkable in some instances, we can’t just do nothing in circumstances where almost half our working population will head for having no pensions.
“We have to keep our eye on the big picture, which is that if we don’t do something then up to half of our entire population will retire on no income other than the state pension. We just can’t stand around and let that happen.”
Out of a workforce of two million, around 900,000 people do not have a private or occupational pension. Those who fail to invest in their future face the prospect of trying to survive on a state payment of €9,000 a year when they retire.
