Survey reveals low pensions coverage

Three quarters of people who do not contribute to a pension say they would not be able to live off the State pension of €223 per week, according to a survey carried out on behalf of the Pensions Board.

The survey of 1,000 people, carried out in March, found that only 48 per cent of those interviewed had been offered access to a pension. This is despite the fact that employers are obliged by law to offer their employees access to one.

Some 96 per cent of respondents said they had never asked an employer about access to a pension.

The research was released to coincide with the launch of the National Pensions Action Campaign for 2008 which aims to improve pension coverage in Ireland - currently at about 55 per cent of the workforce.

A number of initiatives, including an ad campaign, aimed at raising awareness among specific groups which have a lower-than-average pensions coverage will be held during a National Pensions Action Week from May 1st to 7th.

These groups include women, those employed in the hospitality and retail industries, members of the farming community and young people.

There are about six people working for every person aged over 65 Ireland, according to Minister for Social and Family Affairs Martin Cullen. However, by the year 2050, that ratio is projected to be about two people working for every person over 65.

Mr Cullen said: “Awareness of pensions issues has reached a high level but the challenge which now faces us is to translate that interest into actual pensions coverage. I would urge all workers to consider their pension needs, talk to their employer or provider and make satisfactory provision now for their retirement years.”

The deadline for submissions to the current consultation process on the Government’s pensions Green Paper is May 31st. Mr Cullen said it is important that the Government receive the views of not only representative organisations but also those of the general public on the issue.

Submissions by way of email, letter or fax and copies of the Green Paper are available from the Department of Social and Family Affairs or on the www.pensionsgreenpaper.ie website.