Sir, – Further to Justin Moran's letter (June 9th) regarding the need for an adequate pension system in this State, I think the first step must be acceptance that the present system is not sustainable.
The majority of workers in the private sector have no occupational pensions and for most of those who do it is pitifully small, often much less than their state pension. These occupational pensions have also been hit by the “temporary” government levy, which was in fact permanent. With the erosion of defined benefit schemes, occupational pension schemes based on defined contributions will make the situation of future private sector pensioners even worse.
Those fortunate enough to have public sector pensions are somewhat better off but these are funded primarily out of current government expenditure and are not sustainable as the population ages.
What is needed is a universal pension system to which everyone contributes, be they public sector, private sector, self-employed, unemployed, rich or poor, in proportion to their income. All tax breaks should end. What people already have in benefits they should be allowed to hold. Yes, even very rich people who have ferreted away millions, but the present ramshackle, shuddering system needs to be replaced incrementally, year on year, by a sustainable universal system based on equity.
An organisation such as Age Action should, in conjunction with other social solidarity organisations, conduct the research necessary to cost the introduction of such a universal pension scheme, as I fear our political parties have neither the vision nor the courage to do so. – Yours, etc,
PADRAIG YEATES,
Portmarnock, Dublin 13.
Sir, – In relation to your editorial of June 8th, the impact from the explosion of the pension time bomb will be all the greater due to Central Bank rules inhibiting people from buying their own home. Meagre pensions will not stretch to paying rent in addition to meeting living costs in retirement. The cost of housing life long renters will fall to the State. One hopes the Central Bank has factored this cost into their calculations. I fear that this is another example of passing the bill to the next generation. And what if it refuses to pay? – Yours, etc,
PADDY SWEETMAN,
Dún Laoghaire,
Co Dublin.