Wednesday 7 December 2016

New pension plan to cost hundreds of euro a month

Anne-Marie Walsh

Published 19/07/2016 | 02:30

WORKERS without pensions would be automatically signed up to pay hundreds of euro a month into a new retirement fund scheme under new Government proposals. . (Maarten Wouters/Getty Images)
WORKERS without pensions would be automatically signed up to pay hundreds of euro a month into a new retirement fund scheme under new Government proposals. . (Maarten Wouters/Getty Images)

WORKERS without pensions would be automatically signed up to pay hundreds of euro a month into a new retirement fund scheme under new Government proposals.

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Social Protection Minister Leo Varadkar said the current system, where most people relied solely on the State pension in retirement, was "unsustainable" and the Government had a duty to put a better system in place.

Pension savers' confidence had been "seriously damaged", he said, and had to be repaired if reforms were to be successful.

Workers would have the ability to opt out of the new retirement fund scheme but it was hoped that many would prefer to stay in.

Experts calculate a typical 35-year-old would need to contribute over €300 a month to provide a worthwhile pension.

Mr Varadkar said there was no plan to push the age at which people qualify for the State pension beyond 68. He was speaking at the launch of a Pensions Authority report on simplifying private pensions.

Irish Independent

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