Private pension coverage as a percentage of the national workforce is falling, with the numbers joining private pension schemes not keeping pace with the huge increase in recent years in the numbers at work, the Pensions Board has stated.
This situation will be addressed in the forthcoming Pensions Bill and in particular the new Personal Retirement Savings Accounts (PRSAs), which the board believes should increase the level of cover.
Commenting on the 6 per cent increase last year in pension-scheme membership, Pensions Board chief executive Ms Anne Maher said: "It suggests fewer companies are introducing pension schemes and that is a concern. It also suggests that young people going into jobs are not interested in pensions."
She added that over the past three years there had been a far higher level of employment growth than in pension-scheme membership.
The Minister for Social, Community and Family Affairs, Mr Dermot Ahern, said that the Pensions Bill - which would facilitate the introduction of PRSAs - should be completed in the next few months.
"PRSAs are a much more easily-understood product and will allow transferability between pension schemes," said Mr Ahern.
Ms Maher added: "PRSAs should get more young people to plan early for their pensions. They will meet young people's requirements and the Pensions Bill will dictate to the pension providers what they must include in their products."
The Pensions Board's report shows that there have been improvements in pension-fund trustees' compliance with the regulatory requirements of the Pensions Act.
Pensions Board chairman Mr Eamon Heffernan said: "There is clear evidence that there are still many schemes which are not compliant."
He added that while many of the problems arose from poor administration, "inadequate and out-of-date pensions administration is simply not acceptable".
The annual report shows that the Pensions Board took legal action in five cases last year to ensure compliance with the Act and was successful in each. The board is currently working on 150 investigations while 16 investigations deemed serious are currently in hand.
