Sir, I refer to your report of May 24th entitled "Pension Survey - UK study finds poor pension coverage". The last paragraph in the article was misleading and could cause concern when it stated that "State pension benefits may be defunct in 30 years".
I have indicated publicly on several occasions that I recognise fully that demographic changes will have an impact on the future costs of social welfare pensions. These costs are set to increase by some loo per cent by the year 2035.
On the other hand, the effect of real long term growth in the economy, if maintained, should increase the resources available to pay for pensions in the future (although obviously there will be many competing claims on any such resources). Also, while the ratio of economically active to retired people will fall, so also will the ratio of dependent children to active members of the labour force.
The 1994 report of the National Pensions Board raised and considered these issues, and this report is being examined within my department. I intend to bring forward proposals based on its recommendations in the context of next year's Budget. By then we will also have the results of the major pensions survey, which is currently nearing completion and will give us the essential, up to date information we need for policy formation in this area.
This Government is not complacent about the changes that face us, but it is important to stress that there is no danger to anyone's current pension entitlement, as could be implied by the reference in your report. Providing we face up to the needs which we know will arise because of demographic change, we can deal with them in an orderly and effective way. - Yours, etc.,
Minister for Social Welfare,
Aras Mhic Dhiarmada,
Store Street,
Dublin 1.