Campaigners for elderly criticise pensions policy

Government policy of encouraging as many people as possible to take out private pensions has been sharply criticised by the older…

Government policy of encouraging as many people as possible to take out private pensions has been sharply criticised by the older people's campaigning group, Age Action Ireland.

Robin Webster, chief executive of the organisation, said people who had been working all their lives "have already provided for themselves in terms of their taxes and PRSI payments".

The State pension should be adequate for all people to live in dignity, he said. "The Government has a responsibility to provide for people, especially when you look at the amount they are taking in taxes."

Speaking as Age Action Ireland presented its pre-budget submission, he said the current State contributory pension - €193.30 - was equal to about 32 per cent of the average industrial wage of €588 per week. "That compares with other OECD countries where the state pension is 57 per cent of the average industrial wage."

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He said if Ireland was to provide pensions comparable to those in the rest of the EU, the State contributory pension would be about €300 per week.

He said the Minister for Social and Family Affairs, Séamus Brennan, who is spearheading the campaign to get people to provide their own pensions, was trying to "abdicate" Government responsibilities to people.

"According to Eurostat," said Mr Webster, "Ireland has the lowest spend on pensions across the EU at just 3.6 per cent, compared with 12½ per cent across the rest of the EU."

The organisation for the elderly says 120,000 people over 65 are at risk of poverty, with 15,000 living in consistent poverty - ie, they may not have a winter coat and do not have a hot meal every day.

Age Action is seeking an increase in the State non-contributory pension from €182 to €206 per week, and an increase of €25 in the State contributory pension - from €193.30 to €218.30.

Kitty Holland

Kitty Holland

Kitty Holland is Social Affairs Correspondent of The Irish Times