IRISH people may have increasingly to dismiss the idea of retiring early if they are to have a sufficient pension to cover their old age. With most people now expected to live longer, Ireland may have to consider adopting a later retirement age, according to Irish Pensions Trust chairman, Mr Alan Broxson.

Speaking at a conference on the impact of demographic changes on pensions yesterday, Mr Broxson warned that Ireland was "storing major problems" for the future if widespread claims for earlier retirement were to be met.

Prof David Miles, a senior economist at Merrill Lynch, told the conference that many European states would have to face less generous State pensions, with demographic influences set to have a major impact on financial markets as savings increase.