Pension crisis as retirees must find new jobs
WORKERS will have to take up part-time jobs after retirement to fund their lifestyles, a study has predicted.
Ireland is heading for a pensions timebomb, with senior citizens expected to have to stay in employment long after they have passed retirement age.
Pension expert Mercer has warned that radical measures to tackle the crisis need to be put in place by 2020 in order to safeguard the system long into the future.
Second careers will be more common by then, it said.
And few workers will be able to move from salary to pension in one go.
"One in five 30-somethings will be likely to see their 100th birthday and there will be only two workers for each person in retirement, compared to five workers for every pensioner today," said Tom Geraghty, Mercer's chief executive.
"This highlights the urgency for the Government to continue to push ahead with its planned introduction of auto-enrolment and ultimately mandatory pension saving."
Auto-enrolment would involve all workers being automatically enrolled into a pension scheme.
There are over half a million senior citizens in Ireland, all of whom are in receipt of a state pension. That figure is expected to soar to 750,000 by 2021, a million by 2031 and 1.5 million by 2040.
Niall O'Callaghan, head of defined contribution pensions with Mercer, said many people would have to supplement pensions.