Ireland’s pension system has been ranked as one of the lowest in the European Union, with many experts highlighting its inefficiency and lack of sustainability. As the population continues to age and life expectancy increases, there is a growing concern that Ireland’s pension system may not be able to provide adequate support to its retirees.
When compared to other countries, Ireland’s pension system falls short in various aspects. For example, in terms of coverage, only 35% of Irish workers are covered by occupational pension schemes, while the majority of the workforce relies on the state pension. This leaves a significant portion of the population at risk of facing financial struggles during retired life.
Moreover, Ireland’s state pension is lower than the average for other European countries, with retirees receiving around 34% of their pre-retirement income. This is significantly lower than countries like the Netherlands and Denmark, which provide close to 100% replacement rates. This highlights the need for Ireland to address its pension system and work towards providing a more secure and sustainable future for its retirees.
One of the key areas for improvement in Ireland’s pension system is increasing coverage and participation in occupational schemes. This can be achieved by introducing mandatory or opt-out pension schemes for employers, as seen in countries like the United Kingdom and Australia. Additionally, the state pension should be reviewed and