Most workers have no pension
Less than half of workers are currently in an occupational or private pension scheme, according to new figures from the Central Statistics Office (CSO). Just 47% of workers in Ireland are currently contributing to a pension plan.
The CSO figures show that only one in six workers aged between 20 and 24 have pension coverage, while 70% of those aged between 45 and 54 pay into a scheme.
Irish Congress of Trade Unions (ICTU) general secretary Patrica King said the figures reaffirmed the case for auto-enrolment, which entails compulsory occupational pension provision funded by contributions from employees, employers and the State.
Fórsa backed the introduction of auto-enrolment at its national conference in Killarney in May 2018.
Commenting on the CSO figures, ICTU’s social policy officer Laura Bambrick said: “Tax relief has failed as a policy instrument to encourage low and middle-income earners to save enough to secure their future financial stability.”
She added that Government plans to introduce auto-enrolment by 2022 were in line with international best practice, and said a legal requirement on employers to contribute to workers’ pensions was necessary to boost pension coverage and address the current policy failure.
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