A chara, – Cantillon argues: “Leaving the State pension age at 66 just adds unnecessarily to the financial pressure. It also adds to the burden on the younger, working population to the benefit of the older and generally better-off cohort” (“Call to leave State pension age at 66 looks like the wrong one”, Business, July 2nd).
There is little attention in the pension age debate as to how little raising the qualifying age would actually save. The Commission on Pensions relied on models produced by the Irish Fiscal Advisory Council and the Department of Finance, which showed only a small savings in future pension expenditure. Further, Department of Social Protection projections showed potential savings could be even lower. Given these projections, there would appear to be no fiscal necessity to increase the pension age.
As to the burden on the younger, working population it is worth noting that in opinion polls, it is the younger population who are most opposed to raising the pension age, more than other age groups. This is not surprising. The real burden lies in increasing the age at which people can access a pension after a lifetime of work. This is particularly the case for those who are engaged in arduous physical and mental occupations, a group that would find it penal to work beyond 66 years.
It should be pointed out that many workers in the private sector would like to continue working beyond the State pension age but are prevented from doing so due to their employment contract. The Pension Commission’s recommendation to remove this obstacle to working longer is most welcome and hopefully the Government will urgently address this. This will result in reduced net pension expenditure while increasing revenue, thus enhancing sustainability.
It is not a matter of rejecting the recommendations of the Pension Commission. The commission produced a menu of four “packages” of different measures, all meeting the targets set regarding pensions sustainability. In Package Three, a range of measures are outlined which would deliver the sustainability outcome without increasing the pension age. Siptu believes that the proposals laid out in Package Three could be the basis for achieving a political and social consensus around financing future pensions.
The Taoiseach’s declaration that the pension age should not increase is the correct response. It is both fiscally responsible and socially equitable, balancing both the need for pension sustainability and quality of life expectations. – Is mise,
ETHEL BUCKLEY,
(Siptu Deputy General
Secretary and
member of the
Commission on Pensions),
Liberty Hall, Dublin 1.