Irish industry joins private pensions push

Ireland's financial industry has joined a push to persuade more people to take out private pensions but a lack of confidence …

Ireland's financial industry has joined a push to persuade more people to take out private pensions but a lack of confidence in markets could hinder its success, according to the head of Ireland's pensions authority.

Ms Anne Maher, chief executive of the Pensions Board, said that around 10 industry players, including Irish Life, EBS Building Society and Bank of Ireland, had been approved since last winter to offer as many as 55 different pension products to wean the country off a state-heavy pensions system.

"We have a very good range of products. It remains to be seen how it will work," Ms Maher said in an interview at a fund management conference in Amsterdam.

Most schemes began hitting the streets in April. "Our providers have gone in with some enthusiasm and are very competitive," Ms Maher said.

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Employers have joined a campaign by the Pensions Board and providers to bring the idea of private pensions to a public that has become aware of a pensions problem that has blown up in Europe because of falling markets and ageing populations.

"Pensions have gone from something of a minority interest to where a large part of the Irish population is aware of the pension issue," Ms Maher said.

But she added that tumbling world stock markets and losses in existing pensions had the potential to put consumers off.