New data from the Central Statistics Office (CSO) shows that a third of the working population between the ages of 20 and 69 have no pension coverage outside of the state pension, despite ongoing campaigns to improve pension coverage. Meanwhile, just a quarter of young workers between the ages of 20 and 24 have opted for a private occupational pension.

The latest figures on pension coverage have emerged just as plans to introduce private pension auto-enrolment for most employees have been deferred once again. Nearly half of those workers who do not have a pension have indicated that the State pension would be their main source of income on retirement.

On Wednesday (1st February) the Joint Oireachtas Committee report on the Pensions Commission was published, drawing a mixed response. Fórsa expressed concern about the Committee’s recommendation to delay the implementation of auto-enrolment.

Fórsa official Billy Hannigan criticised the delay, indicating that auto-enrolment has the potential to address income inadequacy for retired workers by ensuring employers contribute to their employee’s living standards: “As recent studies suggest only one in three workers in the private sector have no pension coverage outside the state pension. It’s crucial that workers start paying into their pension as early as possible and that employers are legally compelled to contribute to that pension.

“There have been many cases of workers regretting to set up their pensions at an early age, indicating that they didn’t know how to do it. The auto-enrolment process will remove these barriers and ensure all workers retain a good standard of living once they retire,” he said.

Fórsa, along with the Irish Congress of Trade Unions (ICTU) welcomed several of the committee’s recommendations, especially to retain the pension age at 66, and to the right to retire on a full State Pension from the age of 65 to workers with a long social insurance record.

ICTU’s head of Social Policy & Employment Affairs, Dr Laura Bambrick, welcomed the proposals for the new legislation, indicating that a move to a European-style flexible pension age is long overdue.

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