Government setting up Pensions Commission to look at retirement age

[Brendan Burgess]

Cabinet to discuss establishment of pensions commission

Social Protection Minister Heather Humphreys is expected to bring a memo to Cabinet proposing the formal establishment of a Commission on Pensions.

www.rte.ie

Ms Humphreys is due to publish the relevant legislation in the coming weeks, however, the membership of the Commission should be made public later today.

It is expected to include representation from workers groups, employers, civil society, as well as academics.

The plan is for the Commission to submit a report to the Ms Humphreys in the middle of next year, which will include recommendations on how to proceed with this highly controversial question.

 

[RoseMc]

I think that the country has been crying out for a commission and a report on pension policy.

Yes, I am being sarcastic.

A reasonable retirement age strategy got auctioned at the general election. Politicians had a choice between (a) votes now or (b) someone else pay later.

So the question that should be asked is how can (b) be prevented from happening over and over and over?

 

[Coldwarrior]

As usual, here's what the government are doing on this:

 

[Brendan Burgess]

So the question that should be asked is how can (b) be prevented from happening over and over and over?

I think that the Irish Fiscal Advisory Council or some other such body should set the Budgetary Framework every year and make major decisions such as pension age. They are too important to be left to politicians.

Brendan

 

[Paul O Mahoney]

I think that the Irish Fiscal Advisory Council or some other such body should set the Budgetary Framework every year and make major decisions such as pension age. They are too important to be left to politicians.

Brendan

Waaaa? The government would have to implement this and watching whats going on now between it and NPHET over the last few months, adding another advisory organisation to "advise" would cause a meltdown in Lenister House. Not that its a bad idea.

 

[Brendan Burgess]

Hi Paul

Not an advisory committee at all. A body which actually sets the limits and makes the decisions.

For example, they would tell the government that this year, you are to run a surplus of €10 billion. Or due to Covid , it's ok to run a deficit of €30 billion.

If they exceed that, then the Minister for Finance is replaced by a technocrat.

Brendan

 

[RoseMc]

Brendan - Does this idea exist in any other country? And would this replace the current government, i.e. NPHET?

 

[Brendan Burgess]

This has nothing to do with NPHET!

I don't know of it in any other country.

But the problem of politicians making short term decisions rather than long-term decisions exists in every country I would imagine.

Brendan

 

[Conan]

We have had multiple reports on the “future of pensions”, but nothing ever happens. We have been promised an “auto enrolment system” for decades, but again politicians won’t make a decision. Decisions were made years ago to increase the State Pension Age, but again the politicians chickened out.
Why? Because:
- politicians struggle to make good long term planning decisions which involve costs now (their focus is next election)
- pensions are the ultimate long term investment, but they involve depriving yourself in the short term for benefit in the longer term (a concept unknown to politicians)
- because State Pensions are paid out of current taxation income, very little long term financial planning is considered.
- because some political groups seem to believe that “others” should pay for everything
Am I hopeful of a firm decision being made anytime soon.......NO.

 

[RoseMc]

Thanks Conan - That's an extended version of my point. It's a complete charade. [Mind you, the public also struggle to make good short-term decisions.... today almost half of America will vote for a horrible, horrible person! It is true that we get the politicians we deserve to a large extent and that nonsense is rewarded.]

Brendan - the reference to NPHET was facetious to a point.