Sunday 4 December 2016

New fund to defuse pensions time bomb

Daniel McConnell, Philip Ryan and Niall O'Connor

Published 29/04/2015 | 02:30

Finance Minister Michael Noonan and Public Expenditure Minister Brendan Howlin at Government Buildings yesterday
Finance Minister Michael Noonan and Public Expenditure Minister Brendan Howlin at Government Buildings yesterday

THE Government wants to put billions in taxpayers' money back into a special fund in a bid to defuse the pensions time bomb.

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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.

Irish Independent

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