Pension auto-enrolment at risk of being stalled, warns Irish Life
The Government’s plan to introduce mandatory private pensions for all workers above a certain income limit by 2022 is now in danger of being stalled, putting at risk the adequacy of worker’s future pension pots.
With private pensions still inadequate – research from the Economic and Social Research Institute last week found that women are retiring with significantly smaller pension pots then men – Irish Life, in its pre-budget statement, says the introduction of auto-enrolment needs to be “expedited”.
Currently on the agenda for 2022, the auto-enrolment scheme will follow the example of countries such as Australia and the UK, automatically enrolling employees into pension schemes, which will receive contributions from employees, as well as both employers and the Government. However, its introduction in the Republic has been subject to delays.
“The whole plan is now at risk of being stalled and the target date of 2022 missed. Now is the time to act. The reform programme needs impetus and momentum. The Minister should use Budget 2020 to get the plan back on track if the Government is to reach its 2022 target,” said David Harney, Irish Life chief executive.
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