Sunday 22 October 2017

James Fitzsimons: Mandatory pension funding is only way to solve crisis

There are too few in the workforce to support all those who don't have a pension

It will take so long to recover from the recession that there is no prospect of averting the pension crisis that is coming.
It will take so long to recover from the recession that there is no prospect of averting the pension crisis that is coming.

James Fitzsimons

There are three classes of workers in Ireland -- those who have pensions, those who don't and those whose pensions won't pay the bills.

The Government knows what the problem is, but the solution will not win votes with the electorate so it kicks the can down the road and leaves the solution for somebody else to find. Pensions are not mandatory, unless an employment contract adds it to the package. But even that can be reneged on now.

There are two sides to the problem. First of all, half the population have nothing but the State pension to look forward to and many are not even entitled to that. The real problem is that there are too few people in the workforce to support those who don't have a pension. There are 4.5 workers for everyone retired, but this is falling to 2:1. By the time the current workforce retires, there will not be enough workers to support them. Half the workforce is dependent on the State for support. There is not enough to go around.

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