In recent years, there has been a growing concern over the sustainability of pension provision in Ireland. With an aging population and increased life expectancy, the government has recognized the need to take action in order to ensure that its citizens are financially secure during their retirement years. As a result, various initiatives and policies have been put in place to improve pension provision in Ireland.
One of the key initiatives introduced by the Irish government is the introduction of mandatory workplace pension schemes. This requires employers to automatically enroll their employees in a workplace pension scheme, with both the employer and employee making contributions. This not only helps to increase the number of people saving for retirement, but also encourages individuals to save early on in their careers, increasing the overall amount saved for retirement.
In addition, the Irish government has also introduced tax incentives to encourage individuals to save for their retirement. This includes tax relief on pension contributions, making it more attractive for individuals to save for their retirement through a private pension scheme. Furthermore, the government has also established a national pension fund, known as the National Pensions Reserve Fund, which is dedicated to helping fund future state pension liabilities.
Overall, these government initiatives and policies have been designed to improve pension provision in Ireland, addressing concerns over the sustainability of the current pension system. By introducing mandatory workplace pensions and incentivizing private saving, the