The figures in question refer to those in employment who have private or occupational pensions coverage and relate to the first quarter of 2002. A limited update of these figures for the first quarter of 2004, recently released by the CSO, show coverage at 52.4%.
People may not have private or occupational pensions coverage for a number of reasons. Their employer may not provide a pensions scheme, they may be eligible to join a scheme but have opted not to do so or they may not be willing to avail of the various options which are available to take out a private pension.
Improvements in social insurance coverage implemented since 1979 mean that almost all those in employment are now, subject to satisfying the qualifying conditions, eligible for an old age contributory pension at age 66. However, the Government is committed to increasing the numbers who are supplementing the social welfare pension with an occupational or private pension. The national pensions policy initiative, published in 1998, suggested that up to 70% of workers over 30 years of age need such coverage to maintain their pre-retirement standard of living. The most recent figures released by the CSO show 59.1% of workers in this group with supplementary pensions coverage.
The Government introduced personal retirement savings accounts, PRSAs, in 2003 and these are low cost portable pension products aimed at those without access to occupational pensions. Indeed, employers who do not provide such access are required to facilitate employees who wish to avail of a PRSA by entering into an arrangement with a PRSA provider and deducting and remitting contributions. At the same time, a Government awareness campaign is being run by the Pensions Board on my behalf to encourage people to consider their financial needs in retirement and to make the appropriate arrangements. So far, a total of €1 million has been provided to support this campaign.
The current strategy will be reviewed, in accordance with legislation, in 2006. At that stage, progress towards Government targets will be considered and further action decided on, as appropriate.