The Government’s recently published “National Risk Assessment 2019” identified Ireland’s rapidly-ageing population as a significant risk to a number of essential areas. There is talk from some quarters that the State pension will eventually disappear due to rising costs.

Is this simply scaremongering from those with skin in the game, or should people be fearfu for the future of a cherished benefit? Aisling Kelly, senior healthcare consultant at Mercer, says she is not of the opinion that the State pension is in danger of disappearing but admits “there is a very clear issue around sustainability and its adequacy over time”.

“This was reflected in the recent Budget where we saw a failure to increase the weekly pension for the first time in a number of years,” she points out. Kelly agrees the amount of the State pension is not a huge sum compared with even an average salary. “It’s not great but it is a good safety net for people. Over time, if that’s eroded and it comes under increasing pressure, there will be a challenge there.”

Other areas in the National Risk Assessment document gave rise for concern and one of these is healthcare. Like the pension problem, this is very much linked to longevity. “The ESRI report from 2017 looking at the demand for healthcare showed significant gaps emerging by 2030, which isn’t that far away,” Kelly says.

“The Sláintecare reforms are certainly heading in the right direction but with these significant gaps in demand already building, it will prove difficult to fill them.” An ageing population will also suffer from more serious and chronic diseases, further placing pressure on health services “Mental health and wellbeing will be another significant piece of that, and it’s worth bearing in mind that this is significantly impacted by people’s financial wellbeing,” Kelly adds.

Technical pensions specialist David Boylan of Davy says the pensions roadmap released by the Government last year clearly states that the first pillar for anyone’s retirement will be the State pension. “That’s the commitment that they’ve given,” he says.

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