Young Irish bearing brunt of pension crisis, says Australian pension reformer

Irish pensioners should consider the young before protesting over cuts to their retirement income or asking for further benefits, pension reformer Nick Sherry has said.

The former politician who ran Australia’s pension system said the younger generation was already weighed down with debt, and was bearing the brunt of the economic crisis, an effect being compounded by high emigration.

“People close to retirement who argue for greater benefits should remember there are fewer young people around to pay for them and they are putting a greater burden on them. It’s their kids and grandkids who will have to pay for the benefits or increased payments.

“There are so many young people emigrating from Ireland so there are fewer people around to pay when old people ask for more benefits.”

He said increased human longevity was putting enormous pressure on governments not just with regard to pensions but in healthcare too.

“The burden falls back on the younger people in Ireland. But the younger people are all emigrating.”

Mr Sherry, who was in Dublin for an IFG corporate pensions event, made his comments following the recent publication of an OECD report that found pensioners in Ireland fare better than older people in other countries, with disposable income for older people increasing consistently between 1995 and 2009.

The report also found that Ireland will face challenges on the financial sustainability of the pension system as the population ages.

“You can’t keep making young people pay more and more. People will have to work longer.”

He said it was important for governments to have sustainable retirement income schemes in place as pension problems are linked to financial crises and people on lower and middle incomes end up getting hurt.