Salaries and Benefits
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Pensions in Ireland
by Eugenie Houston

Considering there are five members of the labour force for every one retired person, set to drop to a 3:1 ratio in forty years, it's hardly surprising that pension provision is the topic of much public comment in Ireland. More and more people are now looking towards private methods of funding for their retirement, instead of relying solely on the provisions of the State pension.

The table below indicates pension cover in the private sector and shows an alarmingly low level of pension coverage among the self-employed. A submission to the Pensions Board from the IAPF reveals some of the reasons why. 75 per cent of those questioned claimed they could not afford a private pension. Two-thirds believed the set up costs were excessive. The same number said they didn't understand how pensions worked while almost half trust the State to provide for them adequately in their retirement. Is this wise?