A CUT in the state contributory pension would have a major knock-on impact on private sector workers who are saving for their retirement, a conference was told.
Reducing the state pension would hit hard those who rely solely on this payment in retirement, Irish Life managing director Patrick Burke said.
He said the state pension played a key part in the arrangements underpinning private-sector pension plans.
More than half of the workforce has no pension scheme in place, while many private sector workers who do have one have only built up small pension pots. The weekly state pension payments amount to €230.
The conference also heard that the cap on tax relief for pensions that was introduced in last week's Budget will prompt high earners to stop funding their pensions and instead opt for alternatives, such as long-term savings plans.
The new tax rules mean that people will only be able to generate an annual pension of no more than €60,000.
David Harney of Irish Life said: "Once they hit the new cap on tax relief for pensions, employers may find their higher-paid employees requesting that their pension contributions be added to their take-home salaries."
Meanwhile, a leading pensions expert has predicted that up to half of pension fund trustees will resign from their roles due to increasingly complex scheme rules.
Aidan McLoughlin, of the Independent Trustee Company, said some 200,000 people acted as trustees
Trustees are usually lay people who look after and protect the interests of members of pension schemes. They do not get paid unless they are professional trustees.
Regulator for the sector, the Pensions Board, has issued a consultation paper outlining proposed new rules that would demand greater technical expertise from trustees.
Don't Miss: Your Money Pensions supplement by Charlie Weston, free tomorrow