Ireland. Government needs to pursue a proper pension investment strategy
At a time the economy was booming, the National Pension Reserve Fund was established in 2001, taking up a proposal by Prof Philip Lane to plan ahead for future growth in the numbers of pensioners.
The numbers aged over 65 are set to more than double by 2046, according to CSO projections. The share of the population over 65 will also rise rapidly in coming decades from 13 per cent of the population in 2011 to between 25 and 30 per cent of the population by 2050. Without such a fund, the pension bill will be a major additional burden for future generations, with the risk that pension rates would be reduced to manage the budget.
By saving in advance, the current generation could ensure that balancing the generosity of pensions with their affordability would not be a major dilemma for future taxpayers.
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