THERE SHOULD be a "significant curtailment in tax incentives for private pensions" to achieve greater pension provision and equity, according to two major pension-research organisations.
The Trinity College Pension Policy Research Group and TASC (Think Tank for Action on Social Change) issued a joint call yesterday for a universal State pension similar to that in New Zealand. The State pension should be significantly increased and paid for by significantly reducing tax relief for private pensions. If introduced, poverty among the elderly could be eliminated without an increase in retirement age or a reduction in other public spending, they said.
Gerry Hughes of the Trinity group said among the New Zealand policies were a universal state pension, a second-tier social insurance pension, based on contributions, to top up the universal pension and a "significant curtailment" of tax incentives for private pensions.
"It is worth noting that the combined cost of expenditure on the Irish public pension system and the tax expenditure on the private pension system here is now as great as the combined cost of the universal pension system in New Zealand," he said.
"In the future, the combined cost of the exchequer support for the pension system in Ireland is projected to exceed the projected cost of New Zealand's superannuation system."
The universal pension would prevent poverty, while a contribution-based second-tier system would maintain individuals' incomes and lifestyles, he added.
