Almost 90% of advisers believe pension auto-enrolment will face issues

Independent Trustee Company survey finds high degree of scepticism with Government plan

The Republic is one of only two OECD countries without a mandatory earnings-related element to retirement. Photograph: iStock

The Republic is one of only two OECD countries without a mandatory earnings-related element to retirement. Photograph: iStock

 

More than 90 per cent of pension advisers believe the Government’s promise to implement an auto-enrolment scheme by 2023 will either be delayed or won’t happen, according to a survey by pension trustees.

The Independent Trustee Company’s (ITC) survey found that 56 per cent believe there will be a delay of one or two years, while a further 38 per cent say auto-enrolment will simply “not happen”. The survey sought to gain insight into attitudes towards the State’s pension policy changes that look set to take centre stage later this year or during 2022.

The Republic is one of only two Organisation for Economic Co-operation and Development (OECD) countries without a mandatory earnings-related element to retirement, despite the low level of pension coverage here. The Government has promised to implement an auto-enrolment scheme by 2023 after previous deferrals.

“The findings give a sense of just how much of a thorny issue pension provision has become, particularly since the last election when the Government chose to defer the planned increase in pension age to 67 by establishing a pension commission and asking it to draft a report on the matter,” Glenn Gaughran of ITC said.

“The strategy effectively enabled the Government to avoid making a logical but unpalatable policy decision,” he said.

“Pension advisers are concerned that auto enrolment will face the same decision-avoidance measures by Government, as its implementation will involve financial pain for both workers and employers,” he said.

Business Today

Get the latest business news and commentarySIGN UP HERE