Hi,
The key question is not if this can be sorted Gerry, but how do we ensure there is an equitable solution for all ?
Several issues need attention....
The State cannot afford to fund its pension commitments to all civil servants etc, no more than it can afford to cover the contributory pension in it's current form, into the future. In the private sector, companies have been closing down DB schemes and moving over to DC schemes, cutting their contributions into DC schemes etc. Massive numbers of state employees will try to prevent change, but simply put change must happen for the financial good of the country and it must happen quickly.
Every person living and working in Ireland must be instructed on the basics of how a pension works, how they are funded and how those funds are invested, what significant outgoings will need to be covered in retirement and old age (accomodation, nursing care / health care and food being three key costs). A lot of people still don't understand the basics and in particular, don't realise how big a problem this is going to be for them when they get old. As part of this, the educational system needs to help with regards to teaching future generations about the importance of retirement planning, saving early etc. I don't care if they introduce a new module and cover other basic financial stuff like how to manage a household budget, run your bank account and manage your debts, or just amend the old "Commerce" subject etc. but either way, education is vital and our educators are responsible for helping out here.
A radical and generous transitional arrangement needs to be put in place, to help get everyone into a pension and contributing regularly. Rather than give X amount away in cuts to the USC etc. in the next Budget, I would far rather see a significant financial incentive offered to get everyone paying into their pensions, or those without a pension starting one. It needs to be fair so it does not favour the wealthy, but it also needs to be practical and simple to understand.
Speaking of understanding, the pensions industry also needs to do a lot more to make their products and services easier to understand. Every pension provider should have a "Pensions for Dummies" section on their website, that takes a visitor through all of the basics in simple English, with links to subsequent sections to guide people towards the type of pension they might need. The concept of having a qualified person sell a pension is all well and good, but people need access to information from their homes, at times that suit them and without feeling under any pressure to sign up to a policy with a particular provider or too embarrissed to admit that they don't understand some of the language being used etc.
The idea of just cutting those part time works entirely from potentially collecting a State pension when they get old, or pushing the entitlement age out another few years, once a decade is simply not satisfactory or equitable, without significant action in other areas at the same time.
The list goes on... but hopefully Leo V. is reading and this has given him a few ideas
