Pension scheme for private employees in Ireland will be delayed

DUBLIN: It is reported that the plan to introduce a compulsory pension in Ireland for all private employees above the fixed income limit will be delayed.

The government has decided to implement the scheme by 2022, but it is likely to be delayed again in the wake of COVID-19 crisis, a pension expert said.

The scheme was first introduced in Ireland in 2006. The scheme was such that the employees would enroll themselves in the pension scheme and then the employers and the government would make the necessary contributions to it.

However, the scheme, which was launched with the aim of securing the retirement life of the employees, has been in its infancy for a long time.

Merser Ireland’s DC and Master Trust Leader, Kaitriona McGuinness said that the plan, which was set to take place by 2022, had not made any progress and that due to the challenges posed by the COVID pandemic would be further delayed.

Ireland ranks 14th and B-rated when considering pension systems around the world. However, the sustainability of the pension system in Ireland is currently being questioned.

A week after the government decided not to raise the pension age to 67, new criticism is mounting against the government.

At the same time, Mercer points out that the ratio of employees to pensioners will fall from the current 5: 1 to 2: 1 by 2050, and the number of employees who will receive government pension funding in the future will be very small.