The State will see a significant ageing of the population over the next 50 years, because of increased life expectancy and declining birth rate, the Minister for Finance told the House.

Mr McCreevy said there was currently a ratio of one person aged 65 or over for every five persons of working age. By mid-century, it was projected that the ratio would have risen to one person aged 65 or over to every two persons of working age.

The Minister was introducing the National Pensions Reserve Fund Bill, 2000, which, he said, was aimed at meeting part of the escalating cost of pensions by providing for the establishment of a pensions reserve fund.