Younger workers can no longer take the State Pension as ‘a given’ according to Ireland’s chartered accountants.
This warning comes in conjunction with the findings of budgetary watchdog, the Irish Fiscal Advisory Council, who advised that it would cost the State an additional €370 million a year to provide for new state and public sector pensions between 2021 and 2025.
Ageing population, longer life expectancies and more people in retirement than in the workforce means there is less people paying PRSI to fund the State Pension. Which in turn means less funding to pay out State Pensions.
To counteract this the government have pushed out the pension payable age to 66 but this is likely to be moved out further to 67 and 68. The reality is that the State Pension in its current form may not be sustainable in the decades to come.
It is now more important than ever for younger workers to start thinking about how they will fund their retirement. Contributing to a private pension now can help ensure that your money doesn’t run out.
For further information, please speak to your financial advisor or email email@example.com.
*Please note this content is the view of the author and not of Independent Trustee Company