20 Oct 2020
Questions have been raised revolving around the 'generous' State pension, noting that it will not be easy to control. Last week’s Budget raised some controversy as the Minister for Public Expenditure was considering increasing the pension age to 67.
The proposition was put on hold during the Budget following Michael McGrath’s speech, during which he noted, “A Pensions Commission will be established and the Government will consider the Commission's report in due course."
Experts also doubted the Government’s deadline to introduce a new auto-enrolment scheme in 2022. The country was recently ranked in the Government deadline to introduce a new auto-enrolment scheme in 2022.
"The State pension continues to be generous in an international context. And while this supports those currently in retirement, it will be increasingly difficult to maintain this level of support in future as the population continues to age, particularly in light of the confirmation in Budget 2021 that plans to increase the State pension age next year have been put on hold," experts conveyed.
An aging population will pose a problem to the Irish government. However, Maureen Kavanagh, CEO of Active Retirement Ireland also noted that as a result of the pandemic, the elderly are staying more indoors – which in turn will lead to an increase in bills. ALONE CEO Seán Moynihan said that the government "failed to set the State Pension at the average weekly wage".