Hello,
I have been giving this a little thought of late, how we can rely (or even trust") the state to pay state pensions in the future ?
While deductions are taken at source from PAYE workers for example, to pay into a fund which in theory is saving to pay us pensions in years to come, we have already seen the State push back the earliest age for payment and we have no guarantees that this won't happen again.
Furthermore, with an aging population and alongside that some of our younger people emigrating, it is quite likely that the work force paying into the State will be significantly smaller in years to come than it is now. My understanding is that the State does not "invest" our payments now (please don't tell me the "investment" in the banks will be sufficient), for the future but instead works on the basis that future taxes and PRSI/USC payments will all be pooled and from this source, future payments will be made. If this is true, then it looks quite likely that the State won't have sufficient funds to pay it's future obligations. Is this the case ?
Ultimately, are we paying into a fund in the expectation of getting a pansion from the State that will either be far smaller than we are currently led to believe, or perhaps even a pension we can never secure payment on, given the age for qualification will have been pushed back beyond the reach of the majority etc ?
I have been giving this a little thought of late, how we can rely (or even trust") the state to pay state pensions in the future ?
While deductions are taken at source from PAYE workers for example, to pay into a fund which in theory is saving to pay us pensions in years to come, we have already seen the State push back the earliest age for payment and we have no guarantees that this won't happen again.
Furthermore, with an aging population and alongside that some of our younger people emigrating, it is quite likely that the work force paying into the State will be significantly smaller in years to come than it is now. My understanding is that the State does not "invest" our payments now (please don't tell me the "investment" in the banks will be sufficient), for the future but instead works on the basis that future taxes and PRSI/USC payments will all be pooled and from this source, future payments will be made. If this is true, then it looks quite likely that the State won't have sufficient funds to pay it's future obligations. Is this the case ?
Ultimately, are we paying into a fund in the expectation of getting a pansion from the State that will either be far smaller than we are currently led to believe, or perhaps even a pension we can never secure payment on, given the age for qualification will have been pushed back beyond the reach of the majority etc ?