The Government is on target to meet its commitment to deliver a basic state pension of at least €200 by 2007, according to Minister for Social Affairs Seamus Brennan.
But the Minister, was speaking at a pre-Budget forum meeting of 32 voluntary and community groups, also said action was needed to head off an impending pensions crisis.
"The reality was that out of a workforce of two million people some 900,000 people, the majority of them women, were heading towards retirement with totally inadequate private or occupational pension provision, apart from reliance on the State pension of less than €10,000 a year," he said.
The Minister told the forum that a statutory review of pensions policy by the National Pensions Board was due shortly and would form the basis for reforms.
Mr Brennan also said considerable progress has been made on tackling child poverty, which affects one in seven youngsters, and removing obstacles to employment for 86,000 lone parents.
"As I have said many times, our economic progress is not intended to make millionaires, or even billionaires, of the select few while others continue to face a daily struggle," Mr Brennan said.
"That is why I have at all times fought to sustain economic progress so that we can harness it to lift all boats and make a positive and lasting difference to the lives of those people represented here today by the many organisations, and many others."