Pensions in Ireland: A responsible way forward

Jan 24, 2018

A significant majority of Chartered Accountants favour pension auto-enrolment to guard against poverty in retirement.

NEWS BODY - Pensions in Ireland A responsible way forward-min

Cróna Brady, Tax Manager, Chartered Accountants Ireland pictured with Institute President Shauna Greely.

In a report released today, Chartered Accountants Ireland examines the challenge of an ageing population in Ireland, the reasons that some private sector workers do not provide for their pensions and also looks at a number of different pension funding models used in other countries. 

“The picture emerging is grim; with only 40 percent of private sector workers making any provision for their retirement pensions, more than half of these workers are instead going to rely on the State Pension for the bulk of their income in later life. This will result in many people living on the poverty line. With an increasingly ageing population, this also puts enormous pressure on the State’s finances”, said Shauna Greely, President of Chartered Accountants Ireland. 

The Institute’s proposals outlined in Pensions in Ireland: A responsible way forward were backed up by a survey of its members that found that 96 percent of respondents are concerned about Ireland’s pension deficit and are in favour of auto-enrolment. This would see employees automatically enrolled in a pension scheme by their employers and employers and employees would both contribute to the pension fund.

“We recognise that affordability will be an issue for some workers but auto-enrolment allows those who absolutely cannot afford to provide for a pension to opt out while keeping those who can (and will not actively opt out) in the system”, said Ms Greely.

Chartered Accountants Ireland has over 26,000 members working in every sector on the island of Ireland, and is uniquely placed to identify the challenges that the pension deficit will bring. The Institute believes that the measures proposed in the report will go some way to bridging the gap between public and private sector workers and ensure workers have sufficient resources to fund their retirement.

The Institute is providing the findings of both the research and survey to our elected representatives in the Dáil and the Seanad.

ENDS

Reference: Dr Brian Keegan, Director of Public Policy and Taxation, E: brian.keegan@charteredaccountants.ie

Bryan Rankin, Marketing Manager, T: +353 1 637 7268, E: bryan.rankin@charteredaccountants.ie 

Notes for editors:

Chartered Accountants Ireland is Ireland's largest and longest established professional body of accountants founded in 1888. The Institute currently represents over 26,000 members around the world.
Photos of today’s launch will be released from Iain White Photography to pix desks by noon today 24/01/18.
View the Pensions report.