New fund to defuse pensions time bomb
THE Government wants to put billions in taxpayers' money back into a special fund in a bid to defuse the pensions time bomb.
Pressure is set to grow as the cost of State pensions will soar by €200m per year until 2026.
Public Expenditure Minister Brendan Howlin warned of a massive pensions crisis because of an ageing population and higher life expectancy.
Mr Howlin's warning came as the Government unveiled its much heralded economic Spring Statement pitch of €1.5bn tax cuts and additional spending measures to voters ahead of the next election.
Mr Howlin said he strongly favours a revival of the taxpayer-funded pension pot - the National Pension Reserve Fund - which amounted to €25bn before it was raided during the financial crisis.
Mr Howlin warned people were not saving enough for their futures but said there is "no threat" to old-age pensions.