Pensions Green Paper Released

This morning the pensions green paper was announced, with its own fancy dandy website. At the moment I am working through the executive summary. Its interesting that they went with a green paper on this one, this government has not been the best at consultation and has a very low record of consultation on policy. So in that sense it is to be welcomed as a chance to get to grips and also to make a submission on the documents (which you can do here). However I suppose it is correct of Fine Gael to point out this has been an issue for quite a while and ten years is a long time to get only a green paper ready.

The report doesnt engage with its own proposals by opting for one particular model, either the traditional model versus some sort of mandatory/voluntary SSIA type scheme on pensions. As a problem it is quite a big one, we are going to face funding shortfalls in pensions in the coming future but it is still possible to avoid it for ourselves. There is a popular familiarity with the SSIA which might put that into the pole position regarding options but others such as PRSI and private pensions can be considered.

With statistics like this to go with it you can see how urgent it is;

They suggests that the current ratio of six adults of working age for every one retiree currently will fall to just two adults of working age for every person over 65 years-of-age by 2061. The proportion of the population aged over 65 is expected to more than double to 28 per cent by 2050.

And before you mention it;

Asked whether the aim of a “fair” pension system for all would see reform of the public service pension system, Mr Cullen said the consultation could not start with preconditions.

“Clearly people who work within the public service have a very good pension . . . ” he said.