Latest OECD Report confirms looming pension crisis – O’Dea

Published on: 22 April 2013

Fianna Fáil Spokesperson on Social Protection, Willie O’Dea TD, says the OECD Report launched today on the Irish pension system confirms there is a looming pension crisis in the country.

Deputy O’Dea commented: “Today’s OECD report confirms that there is a looming pension crisis in Ireland.  At the moment; there are 6 people of working age for every person over the age of 65; by 2060 this will have changed dramatically to 2 people of working age for every person over 65. To combat this, the report calls on all workers in Ireland to make compulsory contributions to pension scheme which is utterly unrealistic.

“The report comes on the same day we learned that a study conducted by Amarach Research revealed that 1 in 4 people would be pushed into arrears on their bills if their incomes were to drop by €50 a month. So to suggest that all workers can make a compulsory contribution to a pension scheme is unrealistic, especially as 1 out of 4 mortgages in Ireland are at risk of defaulting.

“However, I feel today’s OECD report should be debated by the Oireachtas so a wide-ranging discussion can take place.

“I hope the launch of this report is not another publicity stunt by Minster Burton and we have real and meaningful interaction and debate on this very significant body of work.

““Proceeding as we are, with no responsible debate about how we plan for this future, is not sustainable.  I recently launched a discussion paper on Private Pension Scheme which was a genuine effort to kick start that debate.

“My paper looks at pension schemes under four different categories; pension scheme liabilities, the priority order, early access and pension charges.
“It is worrying that over 900,000 workers in Ireland will rely solely on the state pension once they retire. We need to take action now to prevent a huge pension crisis and debate on this report would be a progressive first step.”

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